109-year-old grocery chain makes major cuts ahead of holiday season

With inflation continuing to raise the cost of everyday essentials and federal policy changes tightening eligibility for SNAP, millions of Americans are struggling to meet their basic needs.

These pressures are now extending beyond households and into the corporate world, forcing many companies to restructure, close locations, and lay off employees to remain profitable in an increasingly challenging environment.

One of the latest companies navigating these difficulties is a long-standing grocery chain that is now making significant operational changes as it adapts to the evolving retail landscape.

Founded in 1916 as the United Cash Store in Oklahoma, United Supermarkets has grown into a grocery staple, operating 96 stores across 54 communities under its United Express, Market Street, Amigos, and Albertsons Market banners.

Albertsons (ACI) acquired United Supermarkets in 2013, further expanding its reach across Texas and introducing it in the New Mexico market. Today, The United Family employs around 18,000 workers.

United Supermarkets reveals more layoffs

United Supermarkets will lay off 126 workers at its main office in Lubbock, Texas, on January 19, 2026, according to a WARN notice filed with the Texas Workforce Commission. The impacted roles include director-level, marketing, and support desk positions, as reported by Chron.

The company says it will attempt to transition the affected employees into alternative roles throughout the restructuring process. The conversion to new operating systems is expected to start in late January 2026 and be completed by mid-to-late 2026, according to a statement by the United Family to KCBD.

"As we invest in new operating systems across the division, we are building a stronger foundation to deliver the highest-quality services for our guests," said The United Family Division President Sidney Hopper to KCBD.

"While this transition will bring changes, we are dedicated to supporting every impacted team member with care, resources, and potential opportunities. Our goal is to ensure that each team member receives the support they need for their next chapter, as we move toward a more efficient and innovative future."

Albertsons' cost-cutting strategy

United Supermarkets' layoffs come as Albertsons continues its own cost-cutting measures. Earlier this year, the chain's parent company revealed plans during an earnings call to reduce costs, primarily in Selling, General, and Administrative (SG&A) expenses.

Albertsons eliminated hundreds of corporate roles across its Safeway banner, including 225 jobs at an office in Phoenix, Arizona, and 156 at two offices in Pleasanton, California, as reported by BoiseDev.

"As we navigate a dynamic operating environment, it's critical that we unlock the sustainable efficiencies to reinvest our strategic growth initiatives offset inflationary headwinds, including annual union labor cost increases," said Albertsons CEO Susan Morris in an earnings call.

"As previously shared, from fiscal 2025 through fiscal year '27, we expect our product engine to deliver $1.5 billion in savings and are on track to achieve the 2025 savings."

Albertsons will reinvest these savings into digital expansion, retail media, customer value improvements, technology modernization, and operational productivity. The company also returned capital to shareholders through a $750 million accelerated share repurchase.

These strategies contributed to a 2.2% increase in same-store sales during the second quarter of fiscal 2025, with a 23% rise in digital sales.

Year-to-date, Albertsons has closed 29 stores and anticipates opening nine new ones by the end of 2025.

Kroger and Albertsons’ failed merger

These restructuring efforts follow a failed $24.6 billion merger agreement between Kroger (KR) and Albertsons.

Proposed in 2022, the deal aimed to form a national grocery powerhouse by expanding the brands' footprints, allowing them to better compete with retail rivals.

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However, the Federal Trade Commission (FTC) blocked the deal in 2024, arguing it would reduce competition, raise grocery prices, lower product quality, limit consumer choice, and harm workers. 

Both companies have since enacted major overhauls within their business to reduce costs and streamline operations.

Kroger makes multiple closures, lays off hundreds of workers

In April, Kroger closed two of its three Kitchen 1883 restaurant locations and will shut down multiple fulfillment centers across its namesake and Harris Teeter banners by February 2026. In its first-quarter earnings report for fiscal 2025, the company revealed plans to close 60 underperforming stores by the end of 2026.

The closures are part of a broader effort to boost e-commerce profitability. Kroger expects to contribute to a $400 million increase in e-commerce operating profit by 2026.

However, the company anticipates about $2.6 billion in impairment charges in the third fiscal quarter of 2025, due to the closures and the underperformance of its automated fulfillment network. Despite this financial hit, Kroger says comparable sales should remain unaffected.

In the second quarter of fiscal 2025, same-store sales increased 3.4%, driven in part by a 16% rise in e-commerce sales.

Kroger facility closures and layoffs

• Pleasant Prairie Facility: 211 jobs
  Source: DWD
• Groveland Facility: 935 jobs
  Source: Florida Commerce
• Frederick Facility: 83 jobs
  Source: Maryland Department of Labor
• Nashville Facility: 132 jobs
  Source: TN
• Oklahoma City Facility: No information as of December 4
  Source: The Oklahoman
• Harris Teeter Franconia Facility: 91 jobs
  Source: Montgomery Advertiser
• Harris Teeter Frederick Facility: 80 jobs
  Source: Virginia Works

Mass layoffs signal a concerning national trend

The wave of mass layoffs comes amid a weakened labor market, where inflation, rising costs, and economic uncertainty have made it increasingly difficult for unemployed workers to find new roles, only adding to their financial pressures.

According to the U.S. Bureau of Labor Statistics' Employment Situation update, 911,000 fewer jobs than expected were added in the 12 months through March 2025, signaling a notable slowdown.

In August, only 22,000 new non-farm payrolls were recorded, while the unemployment rate rose to 4.3%, the highest level in nearly four years.

“While the pace of layoffs has picked up somewhat, the hiring rate remains quite low. It is increasingly difficult for those laid off, and for new entrants into the job market, to find a position,” said The Mortgage Bankers Association Chief Economist Mike Fratantoni in a statement.

Research from Harvard Business School notes that relying on layoffs to mitigate temporary economic shifts is often unsuccessful and has hidden costs that make companies less profitable, innovative, and productive over time.

“While layoffs may provide immediate financial relief, they often incur significant long-term costs that can undermine the very stability and performance they aim to protect,” said Headhunter & Talent Strategist Bryan Blair.

Related: 43-year-old grocery chain to close stores less than a year after opening