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42m ago

Kroger to Shutter Three Robotic Fulfillment Centers and Make Instacart Its Primary Delivery Partner

The grocer aims to lift eCommerce profits by shifting toward outside delivery partners after its automated network underperformed.

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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Overview

  • The closures include facilities in Groveland, Florida; Pleasant Prairie, Wisconsin; and Frederick, Maryland, with shutdowns expected in January 2026.
  • Kroger will use Instacart for delivery across Kroger.com and the Kroger app, with DoorDash available via its marketplace and Uber Eats access slated for early 2026.
  • The company said it expects approximately $2.6 billion in impairment and related charges in fiscal third quarter 2025 tied to the automated fulfillment network.
  • Kroger projects about $400 million of improved eCommerce operating profit in 2026 following its shift to a hybrid fulfillment model.
  • Groveland officials said about 1,000 to 1,400 local jobs are at risk, and Lake County is coordinating with CareerSource Central Florida and LEAD to support affected workers.