Kroger is pulling out of Central Florida in the new year, representing a loss of hundreds of jobs, mostly in Groveland where one of the soon-to-be-shuttered facilities is located.
The city of Groveland was chosen as the site for Kroger’s new Customer Fulfillment Center in March of 2019. It began delivering groceries to customers in June of 2021.
But, now, slightly more than four years later, Kroger is closing three of its automated facilities nationwide, including the one in Groveland.
The city says the 1,400 employees who work there, many of whom are Groveland residents, will be out of a job when the site closes sometime in January.
In a statement, a city spokesperson said with the holidays upon us, “This is an especially difficult time for employees to hear this news, and our hearts go out to those affected.”
The move was made as the chain aims to improve its e-Commerce profitability.
“Following a comprehensive review, Kroger identified opportunities to optimize its fulfillment network by closing facilities in Pleasant Prairie, Wis.; Frederick, Md.; and Groveland, Fla. in January, while monitoring the remaining facilities' performance,” read a statement from Kroger.
Kroger said these changes will bring in a profit of approximately $400 million in 2026 in its e-Commerce division, but the company will incur a loss of $2.6 billion in the third fiscal quarter of 2025 due to these closures.
Kroger said it will continue to operate automated facilities in other parts of the country with a higher “density of demand” and will pilot, “capital-light, store-based automation in high-volume geographies to improve fulfillment capabilities and elevate the in-store customer experience.”
The company will also expand its partnership with Instacart, DoorDash and Uber Eats to reach new customers in as little as 30 minutes.
The city said it is working with Lake County and CareerSource Central Florida to help impacted employees find new job placements. Click here to be connected with CareerSource Central Florida.
You can also call 2-1-1 for employment assistance from Heart of Florida United Way.
