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Kroger is closing three automated fulfillment centers to shift to store-based delivery, aiming to boost e-commerce profits.
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.
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.
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.
Kroger will continue operating five automated sites and will pay Ocado over $250 million in compensation.
The announcement led to a 16% drop in Ocado’s shares and a 1% rise in Kroger’s stock.
Kroger está cerrando tres centros de cumplimiento automatizados para cambiar a la entrega basada en tiendas, con el objetivo de aumentar las ganancias del comercio electrónico.