Kroger is set to close about 5% of its grocery stores — amounting to approximately 60 locations — over the next year and a half.

The closures come a few months after plans collapsed for a merger with rival Albertsons that would have created a massive chain. That resulted in the two companies becoming embroiled in a legal fight.

Kroger revealed in an earnings release Friday that it was taking a $100 million impairment charge on the closures, but that they would provide a “modest financial benefit” in the long term. The company did not say which specific stores were slated for closure and didn’t immediately respond to a request for comment.

Affected employees will be offered positions at nearby stores, Kroger said, and it will use the money saved to invest in “customer experience” at the remaining locations. Kroger has roughly 1,200 stores spanning 16 US states.

The grocery chain said it is benefiting from consumers cutting back spending on dining out and lifted its sales forecast for the year. Interim CEO Ron Sargent said in an earnings call that its customers are “eating more meals at home.”

Kroger’s sales were also boosted by price cuts on 2,000 products and a bigger promotional push for its private labels, which are often cheaper than name brands, it said. Sales of its private label products have grown faster than sales of national brands for seven consecutive quarters, Sargent said. In the coming months, Kroger will also launch 80 new protein-rich products to capitalize on consumers’ growing appetite for the nutrient.

As for the closures, Sargent said “not all of our stores are delivering the sustainable results we need” and that the company had not reviewed its locations during the merger process as it usually does every year.

Sargent was named the interim CEO in March following the abrupt resignation of Kroger’s former leader, Rodney McMullen, after an investigation into his personal conduct.

Kroger (KR) shares closed nearly 10% higher Friday.