E-commerce
Photo: Scott Habermann – stock.adobe.com
November 24, 2025
Kroger is closing three automated delivery fulfillment centers it runs with Ocado, a British online supermarket and tech company.
Kroger is shuttering facilities in Pleasant Prairie, Wisconsin, Frederick, Maryland and Groveland, Florida.
The move will incur an impairment charge of $2.6 billion in the grocer’s third fiscal quarter, according to a Reuters report.
The two companies joined forces in 2018 on Kroger’s Smart Platform for the centers. They will continue to operate five remaining five sites in Ohio, Texas, Georgia, Colorado and Michigan.
At the same time Kroger is expanding relationships with Instacart, DoorDash and Uber Eats, according to a press release.
It expects to boost e-commerce profitability by about $400 million in 2026.
“This will be used to improve the customer experience through lower prices and better store conditions while also improving operating margins,” stated the release.
“E-commerce remains a core part of serving customers who want better value, wide selection and flexible ways to shop,” Ron Sargent, Kroger’s chairman and CEO, said in the release. “We are building on a strong foundation with five consecutive quarters of double-digit eCommerce sales growth and increased profitability improvements. We are taking decisive action to make shopping easier, offer faster delivery times, provide more options to our customers, and we expect to deliver profitable sales growth as a result.”
Kroger will be one of the first retailers to offer customers access to Instacart’s AI assistant, Cart Assistant on Kroger’s iOS mobile app. In addition, Kroger announced the upcoming launch of a new customer experience on Uber Eats Marketplace in early 2026 to fulfill more customers shopping needs by providing access to groceries when customers order meals from their local restaurants as well as offering standard grocery delivery.
