Kroger will cease operations at its Groveland, Fla., fulfillment center early next year as part of a major shift in the company’s e-commerce strategy. The announcement was made this week in a company press release outlining broad changes to Kroger’s online delivery model.
The Groveland facility was launched as part of a high-profile partnership between Kroger and Ocado to serve as the delivery-only grocery store’s hub in Central Florida. Since Kroger does not operate a traditional supermarket in the area, this fulfillment center is the company’s sole presence in the Central Florida grocery market.
Kroger confirmed it will close its Groveland center in January, along with similar automated facilities in Wisconsin and Maryland, as it opts for a more streamlined, profit-driven approach and pivots away from its current model. The company said the revised strategy is aimed at improving customer experience and reducing operating costs.
The decision effectively means Kroger will exit the Central Florida market, ending a years-long effort to compete with Publix, Walmart and Amazon through delivery-only grocery services. The company did not immediately say how much local jobs would be affected, but said it would work with employees on transition options whenever possible.
Kroger stressed that while the Groveland closure will end its operations in Central Florida, the company will continue to focus on e-commerce and expand alternative delivery methods in areas where it has brick-and-mortar stores.
