The Kroger Co. announced updates that will result in a new, simpler customer experience in addition to profitability improvements on Tuesday morning. As a part of the plans, Kroger Co. said in a news release that it would be closing three delivery fulfillment facilities.The closure of the Central Florida distribution center is a part of these plans, putting over 1,000 employees out of a job.There is no specific date yet, according to Kroger Co., but the closure is expected sometime in January 2026.How this impacts Central FloridaIn Lake County, the Groveland location is shutting down. One county commissioner says in many ways, today’s news feels like a “profit driven betrayal,” especially after the location opened just a few years ago.As a result, between 1,000 and 1,400 people will no longer be employed locally by Kroger after the shutdown.The facility is the county’s seventh largest employer.A news release from city of Groveland officials said:”This is an especially difficult time for employees to hear this news and our hearts go out to those affected. There are approximately 1,400 Kroger employees at the facility, many of whom are Groveland residents. We’ve already been in contact with Lake County and will work with CareerSource Central Florida to support their employment strategy.”Officials say this news blindsided them. Kroger Co.’s plansAccording to a news release put out by the company, Kroger’s plans include an initiative to evolve e-commerce offerings to improve the customer experience and drive profitable sales growth. Ways they plan to do this and the outcome of the initiative, according to the news release:Expects to improve e-commerce profitability by approximately $400 million in 2026Expands relationships with Instacart, DoorDash and Uber Eats to reach new customers in as little as 30 minutesIncreased customer traffic and trips through these third-party providers will also fuel Kroger’s retail media business growth through first-of-its-kind capabilities, creating new opportunities for goods and products to reach and engage customers with relevant advertising. Announces closure of certain facilitiesFollowing a comprehensive review, Kroger identified opportunities to optimize its fulfillment network by closing facilities in Pleasant Prairie, Wis.; Frederick, Md.; and Groveland, Fla. in January, while monitoring the remaining facilities’ performance. The company expects to incur impairment and related charges in the third fiscal quarter of 2025 of approximately $2.6 billion as a result of these closures and the automated fulfillment network not meeting financial expectations. About KrogerThe Kroger Co. consists of 400,000 associates who serve over 11 million customers daily through an e-commerce shopping experience in addition to retail food stores. There are more than 2,700 stores in 35 states.Kroger was founded in 1883, when a man named Barney Kroger invested $372 into opening a single grocery store in downtown Cincinnati, Ohio.In 1901, Kroger became the first grocer in the country to establish bakeries, followed by the integration of a meat department, according to their official site. One hundred years after the company’s founding, in 1983, Kroger merged with Dillon Companies Inc.Several other mergers took place over the next few decades, the most recent one in 2018 when it merged with Home Chef.
LAKE COUNTY, Fla. —
The Kroger Co. announced updates that will result in a new, simpler customer experience in addition to profitability improvements on Tuesday morning.
As a part of the plans, Kroger Co. said in a news release that it would be closing three delivery fulfillment facilities.
The closure of the Central Florida distribution center is a part of these plans, putting over 1,000 employees out of a job.
There is no specific date yet, according to Kroger Co., but the closure is expected sometime in January 2026.
How this impacts Central Florida
In Lake County, the Groveland location is shutting down. One county commissioner says in many ways, today’s news feels like a “profit driven betrayal,” especially after the location opened just a few years ago.
As a result, between 1,000 and 1,400 people will no longer be employed locally by Kroger after the shutdown.
The facility is the county’s seventh largest employer.
A news release from city of Groveland officials said:
“This is an especially difficult time for employees to hear this news and our hearts go out to those affected. There are approximately 1,400 Kroger employees at the facility, many of whom are Groveland residents. We’ve already been in contact with Lake County and will work with CareerSource Central Florida to support their employment strategy.”
Officials say this news blindsided them.
Kroger Co.’s plans
According to a news release put out by the company, Kroger’s plans include an initiative to evolve e-commerce offerings to improve the customer experience and drive profitable sales growth.
Ways they plan to do this and the outcome of the initiative, according to the news release:
Expects to improve e-commerce profitability by approximately $400 million in 2026Expands relationships with Instacart, DoorDash and Uber Eats to reach new customers in as little as 30 minutesIncreased customer traffic and trips through these third-party providers will also fuel Kroger’s retail media business growth through first-of-its-kind capabilities, creating new opportunities for goods and products to reach and engage customers with relevant advertising.
Announces closure of certain facilitiesFollowing a comprehensive review, Kroger identified opportunities to optimize its fulfillment network by closing facilities in Pleasant Prairie, Wis.; Frederick, Md.; and Groveland, Fla. in January, while monitoring the remaining facilities’ performance.
The company expects to incur impairment and related charges in the third fiscal quarter of 2025 of approximately $2.6 billion as a result of these closures and the automated fulfillment network not meeting financial expectations. About Kroger
The Kroger Co. consists of 400,000 associates who serve over 11 million customers daily through an e-commerce shopping experience in addition to retail food stores.
There are more than 2,700 stores in 35 states.
Kroger was founded in 1883, when a man named Barney Kroger invested $372 into opening a single grocery store in downtown Cincinnati, Ohio.
In 1901, Kroger became the first grocer in the country to establish bakeries, followed by the integration of a meat department, according to their official site.
One hundred years after the company’s founding, in 1983, Kroger merged with Dillon Companies Inc.
Several other mergers took place over the next few decades, the most recent one in 2018 when it merged with Home Chef.