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flag Kroger is closing three automated fulfillment centers to shift to store-based delivery, aiming to boost e-commerce profits.

flag Kroger is closing three automated fulfillment centers in Wisconsin, Maryland, and Florida in January, citing improved speed and cost efficiency from using its existing stores for delivery. flag The move, part of a broader shift to store-based fulfillment, aims to boost e-commerce profitability by $400 million in 2026 and follows a review that found stores can deliver orders in under two hours from 97% of its 2,700 U.S. locations. flag The closures, which will result in a $2.6 billion charge, are part of a strategy to expand partnerships with third-party delivery services like Instacart, DoorDash, and Uber Eats. flag Kroger will continue operating five automated sites and will pay Ocado over $250 million in compensation. flag The announcement led to a 16% drop in Ocado’s shares and a 1% rise in Kroger’s stock.

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