Kroger, the company that owns 1,239 grocery stores in 16 states, plans to close 60 of its locations in the next 18 months. The announcement comes after the company’s first-quarter earnings showed a decline in sales. The grocery retailer announced that 5% of the closures will be in Cincinnati, but it did not reveal where the bulk of the closings will be located.

Why is Kroger closing 60 stores across the U.S.?

According to CBS News, Kroger’s first-quarter report showed that sales dropped to $45.1 billion. That’s a slight decrease from a year ago, when the company reported $45.3 billion in sales.

“In the first quarter, Kroger recognized an impairment charge of $100 million related to the planned closing of approximately 60 stores over the next 18 months. As a result of these store closures, Kroger expects a modest financial benefit,” the company said in a statement after the latest report, per CBS News.

According to the grocery chain, the savings will be used to improve customer experience. The company also stated that all employees affected by the closures will have a chance to work at other locations.

Where is the Kroger location that is closing in Texas?

While the company hasn’t yet clarified where many of the closures will happen, a Kroger spokesperson confirmed that one Texas location is closing. According to WFAA, the store is located at 1707 W. University Drive in McKinney, Texas.

“Unfortunately, we have made the difficult decision to close our McKinney store located at 1707 W. University Dr.,” Kroger said in a statement, per WFAA. “This closure is part of a larger company-wide decision to run more efficiently and ensure the long-term health of our business.”

What happened with Kroger’s attempt to merge with Albertsons?

Per the Associated Press, Kroger attempted to merge with Albertsons a year ago, but the plan was unsuccessful. Albertsons then sued Kroger, saying the company failed to ensure the merger had regulatory approval. The company added that Kroger did not show its “best efforts” to make the plan a success. Kroger, however, said Albertsons committed “repeated intentional material breaches and interference throughout the merger process.”

Albertsons said in its lawsuit that it’s seeking a $600 million termination fee and billions in legal fees. The court issued a permanent injunction in December to block the merger, the AP reported.