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No. of Recommendations: 4
We've been through this before, a couple of months back

Kroger decision to keep a store open is based on margin and traffic. Obviously fixed and variable overhead of labor figure into these two, but not as much as you would think. If it were, Kroger would be totally exiting CA. Traffic comes down to location and margin is dependent on what the the market will stand. You may have noticed that supermarket chains will vary product offerings base on location, even within a store (Check out beans in the regular section vs the same beans with a Spanish label in the "International" aisle.

The end result is that stores in in lower income neighborhoods tend to have less traffic and margin, so are most likely to close. They need about the same amount of staff to operate as other stores so this is not a large contributing factor.

As expected, Kroger's posted record profits due to shopping patterns during COVID. People cooked at home rather than eating out. Blaming closings on hazard pay is just as opportunistic as outraged politicians, strutting their stuff in mock disgust.
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