US grocer Kroger will shut three automated delivery fulfilment sites in January 2026 and take an impairment charge of around $2.6bn in its third fiscal quarter of 2025.
The facilities are in Pleasant Prairie, Wisconsin, in Frederick, Maryland and in Groveland, Florida.
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The decision follows a review of its e-commerce operations as the grocer increases its use of third-party delivery partners Instacart, DoorDash and Uber Eats.
Kroger’s revised approach is expected to lift e-commerce operating profit by $400m in fiscal 2026 and will be neutral to identical sales excluding fuel.
The company stated that the closures form part of a hybrid strategy combining stores, automated sites where applicable, and expanded external delivery.
Instacart has become Kroger’s primary fulfilment provider, and the retailer will adopt the platform’s Cart Assistant AI tool.
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By GlobalDataKroger has also widened its arrangement with DoorDash and plans to introduce a new experience on Uber Eats Marketplace in early 2026.
Kroger expects increased traffic via third-party platforms to support growth in its retail media business.
The company will continue to assess performance at remaining automated sites and maintain the model in higher-density markets.
It plans to pilot store-based, capital-light automation in busy areas to boost fulfilment capacity and improve store operations.
Kroger chairman and CEO Ron Sargent stated: “We are building on a strong foundation with five consecutive quarters of double-digit e-commerce sales growth and increased profitability improvements.
“We are taking decisive action to make shopping easier, offer faster delivery times [and] provide more options to our customers, and we expect to deliver profitable sales growth as a result.”
In October 2025, Kroger announced plans to hire more than 18,000 employees across its companies in preparation for the upcoming holiday period and beyond.
The recruitment drive will include in-store roles such as cashiers, baggers, deli and bakery clerks, and pharmacy technicians.
