Kroger Shutters Dozens of Little Clinics Citing Low Margins and Costs
Kroger has closed dozens of Little Clinics across multiple states, ending its primary care operations that began in 2017. The retailer cited low-margin reimbursements and rising operating costs, mirroring similar cutbacks by Walmart, CVS and Walgreens in in-store health clinics.
1. Clinic Launch and Expansion
Kroger launched walk-in medical clinics in select stores in 2017 under the Little Clinics brand, aiming to leverage its pharmacy footprint and capture primary care demand. Over subsequent years, the retailer expanded these facilities to multiple states, integrating services such as basic diagnostic tests and chronic disease management alongside prescription fulfillment.
2. Closure Announcement and Scope
In early March 2026, Kroger announced the closure of dozens of Little Clinics across several states, ceasing operations of locations that underperformed. The retailer did not specify exact numbers, but the move represents a retrenchment from its primary care initiative and impacts staff, providers and customers who relied on onsite medical services.
3. Financial and Industry Implications
Kroger cited low reimbursement rates and escalating operating expenses as the primary drivers behind the decision, reflecting thin margins in primary care. The closures mirror similar cutbacks by other retailers like Walmart, CVS and Walgreens, underscoring broader challenges of delivering profitable in-store healthcare and prompting Kroger to refocus on its core grocery and pharmacy operations.