Last Friday morning, as I pulled into my usual spot at the corner café in McKinney, my phone buzzed with a text from a client. “Did you hear Kroger is closing the store on University Drive? Should I be concerned about the house we bought?”
We had just closed on her investment property three months ago—a smart, modern townhome nestled in one of McKinney’s fastest-growing pockets. Like many others, she saw value not just in the home itself, but in the surrounding neighborhood: great schools, accessible roads, rising development, and yes—having a Kroger just five minutes away.
Her concern wasn’t just about where she’d get groceries. It was about what this closure meant. Was this a red flag for the area’s future? Had she invested in a neighborhood about to decline?
But here’s what I told her, and what I tell many clients who follow real estate headlines a little too closely: not every closure is a sign of trouble. Sometimes, it’s just part of a much bigger shift.
Kroger’s decision to close its McKinney store at 1707 West University Drive is part of a larger plan affecting around 60 locations across the U.S. Following the collapse of its $24.6 billion merger with Albertsons—a deal blocked by both federal and state courts—Kroger is now re-evaluating its national footprint. Rather than slowing down, it’s pivoting. The company is closing underperforming stores while simultaneously investing in areas with higher long-term growth potential. In fact, CEO Ron Sargent announced during a recent earnings call that Kroger will complete 30 major store development projects next year.
So what does this mean for McKinney?
On the surface, a store closure might feel like a step backward. But if you zoom out, you’ll see that McKinney remains one of North Texas’s most dynamic markets. Development here hasn’t just continued—it’s accelerated. The city is home to a slew of major commercial and residential projects, including:
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A $1.3 billion mixed-use community near the future U.S. 380 bypass by Creation Equity
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A $324 million JW Marriott resort at Craig Ranch approved by the city
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A $27 million boutique retail center, the Eldorado Neighborhood Shops, currently under construction by SLX Capital
Add to that the fact that McKinney continues to draw new residents, especially young professionals and families seeking more space and better schools than what Dallas proper can offer. The demand for housing here is strong—and growing.
But let’s take a step back. Why do people react so strongly when a grocery store closes?
It’s because grocery stores have long been a kind of neighborhood barometer. When you see a new Whole Foods or Trader Joe’s open, people interpret that as a vote of confidence in the area. On the flip side, when a long-standing store like Kroger shutters, it can trigger panic.
Yet, in today’s rapidly shifting retail landscape, things aren’t so black and white. Brick-and-mortar grocery is undergoing a transformation, pushed by changing consumer habits, rising e-commerce, and real estate costs. Legacy chains like Kroger are forced to become leaner and more strategic.
That’s not to say this closure won’t inconvenience residents in the short term—it probably will. But retail doesn’t vanish; it evolves. And in high-growth markets like McKinney, commercial gaps tend to fill quickly. Whether it’s another national grocer, a regional brand like H-E-B, or even an upmarket local market concept, the odds are good that new retail is already eyeing that location.
Let me give you a real-world comparison. Back in 2022, I had a client in Allen, Texas, where a Tom Thumb store closed unexpectedly. There was initial concern—“What does this mean for home values?”—but within a year, the site was leased by a national fitness brand and a cluster of boutique retailers. That shopping center’s foot traffic rebounded, and property values around it rose by nearly 9% over the following 18 months. In fast-developing suburbs, the only constant is change.
In fact, rival chains are seizing opportunities left by closures like these. H-E-B is expanding aggressively across North Texas. Sprouts Farmers Market continues opening specialty stores in high-income suburbs. Walmart is even testing small-format and “neighborhood market” models. The competition is fierce—and that's good for both consumers and property owners.
If you’re a homeowner or investor in McKinney, here’s my advice: don’t read too much into a single headline. Instead, look at the full picture.
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Is population still growing? Yes.
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Are major employers expanding nearby? Yes.
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Is the city investing in infrastructure and amenities? Absolutely.
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Are developers betting billions on the future of the area? They sure are.
That Kroger store closing? It’s a data point—not a death sentence.
This is a great time to ask yourself: What’s your time horizon? If you’re planning to flip a property in three months, then yes—short-term news like this matters more. But if your strategy is long-term wealth building, you're better off focusing on fundamentals.
Neighborhoods change. Retail changes. But the underlying demand for housing in quality suburbs like McKinney is only headed in one direction—up.
So next time you read that a major chain is closing a store in your area, take a deep breath. Ask the bigger questions. Is your neighborhood losing value—or just transitioning into a new phase of growth?
As for my client? After our conversation, she felt reassured. We even started looking at another investment opportunity just a few blocks away—because when you understand what’s really happening beneath the surface, the smart move isn’t always to retreat. Sometimes, it’s to lean in.