LAKE COUNTY, Fla. – Lake County officials want to recover as much of the $1.3 million in incentives given to Kroger after the grocery retailer announced it would close its massive Groveland warehouse and effectively end its Kroger Delivery service in the Orlando area.
More than 1,400 people were employed by Kroger – and will be impacted by the facility’s closure in early 2026, according to the Florida WARN Notice.
What we know:
On Tuesday, the Lake County Board of Commissioners voted to terminate its agreements with Kroger and Ocado Group, following Kroger’s November announcement that it would close three of its fulfillment facilities, including the one in Groveland, Florida.
As part of that decision, county leaders said it would keep the $400,000 tax incentive for Kroger and redirect it to help those employees impacted by the upcoming closure. Leaders also said they will also make an effort to collect the tax incentives awarded to Kroger from 2022-2024, totaling $1.3 million.
Under the agreement:
– Lake County will keep the 2025 tax incentive ($400,000)
– That money will be redirected to other areas: $40,000 towards road improvements, $360,000 in workforce support programs
– County hopes to get reimbursed for the $1.3M in incentives awarded to Kroger in 2022, 2023, and 2024.
Lake County said the $360,000 would be used to “provide retraining, upskilling, and job-placement services” towards those impacted by the closure. The county plans to work with CareerSource of Florida to oversee education opportunities at Lake Technical College, Lake-Sumter State College, and other local organizations.
What they’re saying:
“We’re going to get through this. We’ll recover somehow, but obviously, we’re going to try to help the people that were devastated by this,” said Lake County Commissioner Sean Parks.
“Moving forward, they’re not going to be receiving any more incentives from us,” he said.
The backstory:
Lake County seeks repayment after Kroger announces early exit
Lake County officials say Kroger’s decision to close all its Florida facilities — including a major warehouse in Groveland — is the economic equivalent of a natural disaster, cutting nearly 1,000 jobs and eliminating an estimated $1.3 million in expected revenue.
Kroger announced in November that it would close three of its Kroger Delivery fulfillment centers in three cities, including one in Groveland.
Kroger said the decision to close these centers was due to them not meeting the company’s financial expectations. It follows previous closures in South Florida, effectively ending Kroger Delivery in much, if not all, of the state.
When does Kroger Delivery end in Orlando?
According to messages sent to Kroger Delivery customers in Orlando, the service will end on Feb. 1, 2026. The last day to submit a delivery order will be Jan. 31, 2026.Â
Residents received notice that Kroger Delivery is ending in their area after Kroger announced the closing of a fulfillment center in Groveland, Fla.
When did the Kroger facility open in Groveland?
Kroger’s Groveland facility opened in 2021 and features dozens of robots that handle the online orders.Â
The Groveland CFC is located at U.S. Highway 27 and American Way and occupies 375,000 square feet.Â
The county had previously paid Kroger $1.3 million in incentives while the center employed local workers and fulfilled grocery orders throughout Central Florida.
What’s next:
It’s not clear how much money, if any, Lake County will be able to get back. It’s unclear what avenues the county will take.
Kroger has not commented beyond the initial release.
Hiring Event
A hiring event will be held on Dec. 10 for those Kroger employees impacted by the closure. A second event would be held in January, officials said.
The Source: This article was written using information sourced from Lake County and previous FOX 35 reporting.