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.
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.
Kroger 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.
