Kroger announces more closures and cuts ahead of the holidays

Shoppers are progressively choosing the convenience of ordering groceries online alternatively than visiting stores successful person. This displacement is triggering large changes crossed Kroger's business, starring to important closures and occupation cuts.

The continued emergence successful popularity of online shopping is transforming user habits and the retail industry. With the quality to capable a integer cart and docket a convenient pickup oregon transportation time, galore customers spot small request to measurement wrong a store.

According to Capital One Shopping, U.S. online grocery sales accrued 104% during the pandemic and are projected to turn 12.3% annually done 2029. In 2025, much than 148 cardinal Americans, astir 52% of the population, are expected to bargain groceries online.

Kroger-owned Harris Teeter volition permanently adjacent its fulfillment halfway astatine 6306 Gravel Avenue successful Franconia, Virginia, affecting 91 employees, according to a WARN announcement filed November 18. The installation volition statesman winding down successful aboriginal to mid-January 2026 and is expected to beryllium afloat closed by February 1, 2026.

Another Harris Teeter fulfillment halfway astatine 7106 Geoffrey Way successful Frederick, Maryland, volition besides unopen down connected February 1, affecting 80 employees, arsenic confirmed by a WARN announcement filed the pursuing day.

The 2 Harris Teeter shutdowns volition articulation Kroger's increasing database of closures. The institution precocious confirmed connected its website that it volition adjacent 5 fulfillment facilities successful Pleasant Prairie, Wisconsin; Frederick, Maryland; Groveland, Florida; Nashville, Tennessee; and Oklahoma City, Oklahoma, successful January 2026, arsenic portion of an effort to streamline operations and amended transportation efficiency.

• Pleasant Prairie Facility: 211 jobs
  Source: DWD

• Groveland Facility: 935 jobs
  Source: Florida Commerce Rockledge Facility: 53 jobs Tampa Facility: 234 jobs Jacksonville Facility: 181 jobs

• Frederick Facility: 83 jobs
  Source: Maryland Department of Labor

• Nashville Facility: No accusation arsenic of November 27
  Source: TN

• Oklahoma City Facility: No accusation arsenic of November 27
  Source: The Oklahoman

The closures are portion of a broader restructuring program to boost e-commerce profitability. Kroger (KR) expects to lend to a $400 cardinal summation successful e-commerce operating nett by 2026, which volition let it to reinvest successful little prices, improved store conditions, and stronger margins.

More Closures:

• 100-year-old market chain’s stores acquired by rival aft closures

• 98-year-old brew store concatenation has closed astir 100 locations truthful far

• 61-year-old fast-food concatenation softly closes dozens of locations nationwide

However, the institution anticipates astir $2.6 cardinal successful impairment charges successful the 3rd fiscal 4th of 2025, owed to the closures and the underperformance of its automated fulfillment network. Despite this fiscal hit, Kroger says comparable income should stay unaffected.

"We are gathering connected a beardown instauration with 5 consecutive quarters of double-digit eCommerce income maturation and accrued profitability improvements," said Kroger CEO Ron Sargent successful the news release.

"We are taking decisive enactment to marque buying easier, connection faster transportation times, supply much options to our customers, and we expect to present profitable income growth."

Kroger operates 1,238 market stores crossed 16 states, but hasn't had carnal locations successful Florida since the precocious 1980s. To capable this gap, the institution relied connected Florida-based fulfillment centers to supply market delivery.

With those Florida facilities closing, the authorities volition suffer entree to Kroger's full market transportation program. Customers successful Oklahoma City, Oklahoma; Nashville, Tennessee; Chicago, Illinois; and Pleasant Prairie, Wisconsin volition lone suffer section entree successful those markets.

According to Fox35 Orlando, Florida customers were notified via email that last orders indispensable beryllium placed by January 31, with transportation ending connected February 1. Kroger’s website states that starting January 7, each remaining transportation options volition travel straight from its stores alternatively of automated centers.

For Harris Teeter customers successful Virginia and Maryland, transportation services volition proceed done its third-party transportation partners, with entree to the afloat merchandise assortment, Kroger confirmed to Grocery Dive via email.

Fulfillment centers aren't the lone portion of Kroger's concern facing cuts. In its first-quarter net study for fiscal 2025, the institution revealed plans to adjacent 60 underperforming stores by the extremity of 2026.

• February: Eliminated 200 positions crossed 3 Cincinnati bureau sites
  Source: Cincinnati Business Courier

• March: Laid disconnected employees astatine 84.51°, Kroger’s retail information subject and analytics subsidiary
  Source: The Cincinnati Enquirer

• August: Cut astir 1,000 firm jobs, chiefly impacting its Technology and Digital division
  Source: The Street

As user preferences evolve, Kroger is heavy relying connected its third-party partners to grow transportation sum and fortify its retail media business.

The institution expanded its concern with Instacart, which volition go its superior transportation fulfillment provider, and Kroger volition beryllium among the archetypal to integrate Instacart's AI tool, Cart Assistant, into its app. The retailer has besides broadened its narration with DoorDash and Uber Eats.

"Our differentiated approach, combining the proximity of our stores with high-capacity automation, the wide assortment of the caller nutrient they love, allows america to fulfill much trips for the families we serve," said Kroger Executive VP and Chief Digital Officer Yael Cosset.

Kroger volition proceed to usage automated lawsuit fulfillment successful high-demand markets portion piloting store-based fulfillment successful engaged regions to heighten its fulfillment capabilities and amended the in-store experience.

In the second 4th of fiscal 2025, full income accrued 0.08%, with same-store income up 3.4%. This maturation was partially driven by a 16% emergence successful e-commerce sales.

"Shifts successful user preferences contiguous an opportune infinitesimal for some shippers and providers to reassess their approaches," said McKinsey & Company. "Decisions regarding cost, speed, reliability, transparency, flexibility, and sustainability tin each beryllium reevaluated. Getting worth propositions close volition trust connected knowing the priorities of circumstantial customers, arsenic determination is nary one-size-fits-all solution."

Related: Kroger announces unexpected closures ahead of vacation season

This communicative was primitively published by TheStreet connected Nov 28, 2025, wherever it archetypal appeared successful the Employment section. Add TheStreet arsenic a Preferred Source by clicking here.