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Kroger to Close Three Ocado Fulfillment Centers, Shifts to Store-Based and App Partners

The grocer projects a $400 million e-commerce profit boost in 2026 following a $2.6 billion impairment.

A general view of a Kroger grocery store in Monroe, Ohio. Jeff Dean/AP Photo
Delivery drivers walk among the dozens of Kroger refrigerated delivery trucks at the Kroger Fulfillment Center in Groveland on Monday, October 23, 2023. Kroger has a “delivery-only” strategy in Central Florida. (Stephen M. Dowell/Orlando Sentinel)
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FILE - A Kroger grocery store is seen in Monroe, Ohio. (AP Photo/Jeff Dean, File)

Overview

  • Facilities in Pleasant Prairie, Wisconsin; Frederick, Maryland; and Groveland, Florida will wind down in January, with some services ending by Feb. 1, 2026.
  • Kroger said the automated sites did not meet financial expectations and it will lean on store fulfillment plus Instacart, DoorDash and Uber Eats.
  • Ocado expects about $50 million less fee revenue next year and more than $250 million in compensation; its London-listed shares fell roughly 16%–20% Tuesday.
  • WARN notices and local officials report 211 job losses in Pleasant Prairie and roughly 1,000–1,400 positions affected in Groveland, with workforce assistance efforts underway.
  • Five Ocado-powered centers in Ohio, Texas, Georgia, Colorado and Michigan remain in operation as Kroger evaluates performance; customers in areas such as Oklahoma City were notified of delivery cutoffs at the start of February.