According to messages sent to multiple customers that were shared with News4JAX, Kroger will no longer be offering delivery service in the Jacksonville area, beginning in January.<\/p>\n
Kroger announced Tuesday that it\u2019s closing three automated fulfillment centers as part of an effort to make its delivery operations faster and more profitable.<\/p>\n
The nation\u2019s largest grocer said it will close facilities in Pleasant Prairie, Wisconsin; Frederick, Maryland; and Groveland, Florida, in January. <\/p>\n
Messages sent to customers said that delivery service in the Northeast Florida area will be ending on Jan. 7, 2026.<\/p>\n
\u201cOur commitment to our customers is to offer them the best service and options to shop with us, no matter how you want to shop,\u201d the message read. \u201cAs we assessed our service, we have decided to suspend operations in your area.\u201d<\/p>\n
According to the message, Kroger is refunding the cost of Boost memberships and offering unlimited-use free delivery through Jan. 6.<\/p>\n
\u201cWe don\u2019t make these decisions lightly, and we understand the impact this has on our customers and communities,\u201d Kroger said in the message.<\/p>\n
In the announcement about the facilities closing, the company said it will monitor the performance of its five remaining facilities.<\/p>\n
\u201cWe are taking decisive action to make shopping easier, offer faster delivery times, provide more options to our customers, and we expect to deliver profitable sales growth as a result,\u201d Kroger Chairman and CEO Ron Sargent said in a statement.<\/p>\n
Kroger partnered with British grocery technology company Ocado Group in 2018 to build warehouses where robots would pick and pack grocery delivery orders. Initially, the companies planned 20 locations, but only eight have been built so far.<\/p>\n
Kroger said it will incur a $2.6 billion charge in its fiscal third quarter related to the closure of its operations. The company said it expects the closures will improve its e-commerce operating profit by $400 million in 2026.<\/p>\n
Ocado shares fell 16% Tuesday on the London Stock Exchange. Kroger shares were up 1% Tuesday morning on the New York Stock Exchange.<\/p>\n
During a conference call with investors in September, Sargent said that in most locations, it makes sense to use stores to fulfill delivery orders instead of centralized warehouses.<\/p>\n
Stores are closer to customers, so orders can be delivered more quickly and cheaply, Sargent said. He said Kroger is capable of delivering orders in less than two hours from 97% of its 2,700 U.S. stores.<\/p>\n
\u201cStores are our most important asset,\u201d Sargent said.<\/p>\n
Sargent said that in some high-density areas with strong delivery demand, automated fulfillment facilities are delivering better results.<\/p>\n
At the same time, Kroger is also leaning more heavily into partnerships with third-party providers. <\/p>\n