Kroger expects these updates to have a positive effect to its e-commerce operating profit of approximately $400 million in 2026, the company also said.
“This will be used to improve the customer experience through lower prices and better store conditions while also improving operating margins,” the company said.
Kroger added that it expects to incur impairment and related charges in the third fiscal quarter of 2025 of about $2.6 billion as a result of these closures and the automated fulfillment network “not meeting financial expectations.”
Kroger said a “comprehensive review” led to decision to close facilities in Pleasant Prairie, Wisc.; Frederick, Md.; and Groveland, Fla. in January, while monitoring the remaining facilities’ performance.
“It does not impact local (Dayton- or Cincinnati-area) customers or associates,” a Kroger spokesperson told the Dayton Daily News Tuesday. “We continue to operate delivery in Ohio, Kentucky and Indiana, in addition to expanded relationships with third-party delivery providers.”
Citing a corporate spokesperson, GroceryDive.com said layoffs would amount to fewer than 1,000 employees nationwide.
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