Overview
- The automated sites in Pleasant Prairie, Wisconsin, Frederick, Maryland, and Groveland, Florida will cease operations starting in January 2026, with performance at five remaining facilities to be monitored.
- Kroger will book approximately $2.6 billion in impairment and related charges in its fiscal third quarter of 2025 tied to the closures and the underperformance of the automated network.
- Ocado said it expects about a $50 million reduction in fee revenue next year and more than $250 million in compensation from Kroger, as its shares fell roughly 17% to 20% on the news.
- Local notices detail significant job losses, including about 1,400 roles at Groveland per city officials and 211 positions at Pleasant Prairie per a state WARN filing, with wind-downs beginning in January and some operations ending by Feb. 1.
- Kroger is shifting toward store-based fulfillment and expanding delivery via Instacart, DoorDash and Uber Eats, noting it can deliver from 97% of its roughly 2,700 stores in under two hours and will retain automation mainly in higher-density markets.