Colorado Grocery Shakeup: 3 Major Supermarket Chains Closing Locations This Spring 2026

Economic pressures, a surge in union-related labor costs, and a "surgical" pruning of underperforming real estate are leading the charge. Here are the three major supermarket chains scaling back their Colorado presence this March.

1. Safeway: The "Mountain West" Consolidation

Following the collapse of the Kroger-Albertsons merger and a recent corporate restructuring, Safeway (owned by Albertsons) is shuttering a significant number of stores as it merges its Intermountain and Denver divisions into the new Mountain West Division.

• The Colorado Impact: As of March 2026, the brand is concluding the closure of roughly 10 locations across the state. These include high-profile exits in Denver (S. Colorado Blvd), Aurora (E. Mississippi), and Fort Collins (S. College Ave).
• Rural Fallout: Perhaps most impactful are the closures in La Junta and Lamar. In these communities, Safeway was often the primary full-service grocer. Residents are now facing drives of up to 60 miles to reach the nearest supermarket, sparking concerns about "food deserts" in the eastern plains.

2. King Soopers & City Market: The Kroger "Efficiency" Wave

Kroger, which operates under the King Soopers and City Market banners in Colorado, confirmed earlier this year that it would close 60 underperforming locations nationwide by mid-2026.

• The Strategy: After pausing store evaluations during the multi-year merger process, Kroger is now moving aggressively to "streamline operations." In Colorado, this means closing older storefronts that are no longer profitable or cannot support the brand’s new AI-driven "digital-first" fulfillment models.
• The "Right-Sizing": Leadership has stated that these closures are necessary to reinvest in higher-performing flagship stores. For Colorado shoppers, if your local King Soopers is "aged" or lacks the footprint for a massive curbside pickup expansion, it is on the watch list for a Spring 2026 exit.

3. Walmart: The Exit from the "Neighborhood Market"

Walmart is continuing its pivot away from smaller, grocery-focused formats toward massive Supercenters that can handle the volume of its InHome delivery service.

• The Colorado Impact: This March, Walmart is finalizing the closure of several Neighborhood Market locations deemed "redundant" due to their proximity to larger Supercenters.
• The Aurora Exit: One notable recent casualty was the Aurora location near the Anschutz Medical Campus, which the company shuttered due to underperformance and high operational costs. The trend in 2026 is clear: Walmart wants you to use their app or visit their "Store of the Future" flagships rather than the smaller, legacy grocery storefronts.

What This Means for Coloradans

While these closures represent a "thinning of the herd," they are also paving the way for a shift in how Colorado eats:

1. Digital Dominance: Almost every closing store this spring has cited "changing consumer behavior" as a factor. Coloradans are increasingly trading the grocery aisle for the delivery app.
2. The Rise of Discounters: As the "Big 3" scale back, discount chains like Aldi and local favorites like Natural Grocers are seeing a surge in traffic from shoppers looking for better value or specialized products.
3. Labor Transitions: Despite the closures, most chains are offering transfer opportunities to employees, attempting to retain their workforce by moving them to nearby high-traffic hubs.