Three of Kroger’s e-commerce fulfillment sites are set for closure on May 25.
The Kroger Co. has come to the end of the road with three of its e-commerce fulfillment centers. Ocado-powered facilities in San Antonio and Austin, Texas, as well as one in Miami, are set to close on May 25, with a spokesperson for the grocer saying they “did not meet the benchmarks we set for success.”
“Kroger’s commitment to innovation means that we test and learn quickly to identify the most effective ways to deliver fresh, affordable food to our customers,” said the spokesperson, adding that despite its best efforts and support from new customers, the facilities did not see the type of success the grocer expected.
According to the spokesperson, Kroger remains committed to growing its e-commerce offerings and delivering fresh food to more communities across the United States, and the closure will not impact its other automated fulfillment centers or cross-docking spoke locations. Kroger currently operates customer fulfillment center hubs in Monroe, Ohio; Forest Park, Ga. (Atlanta); Aurora, Colo.; Pleasant Prairie, Wis.; Romulus, Mich. (Detroit); Frederick, Md.; and Dallas.
Kroger originally entered into an exclusive agreement with U.K.-based Ocado in 2018 with an eye toward transforming the e-commerce experience for its customers and increasing its ability to deliver items with optimal freshness and speed throughout the country. Its hub-and-spoke strategy allows the grocer to seamlessly deliver groceries and home essentials to customers who might not otherwise have access to Kroger’s services.
Serving 11 million customers daily through a digital shopping experience and retail food stores under a variety of banner names, Cincinnati-based Kroger is No. 4 on The PG 100, Progressive Grocer’s 2023 list of the top food and consumables retailers in North America. Kroger is also included on PG’s Retailers of the Century list.
