Kroger has announced it will close three of its automated customer-fulfilment centres in the United States early next year. The decision comes as the retail giant seeks to streamline operations and prioritise faster, more cost-efficient delivery models.
The closures mark a significant pivot in the way Kroger manages its e-commerce network. Automated fulfilment centres were initially intended to handle growing online orders, but high operating costs and logistical challenges appear to have outweighed the benefits. The move is likely to shift more fulfilment back to physical stores and to partnerships with third-party delivery services.
This development raises important questions for the wider supermarket sector. Are large-scale automated warehouses truly sustainable in a market where agility and flexibility are key? How will customers respond to potential changes in delivery speed or availability? Kroger’s strategy may signal a broader trend in the industry, where human-centric and hybrid fulfilment models begin to reclaim prominence over fully automated solutions.
The financial implications are substantial, with billions written off due to impairment costs. The closures may also affect employment and supplier networks connected to these facilities, prompting a careful recalibration of workforce and logistics planning.