Kroger announces more closures and cuts ahead of the holidays

KR +0.37%

Shoppers are increasingly choosing the convenience of ordering groceries online rather than visiting stores in person. This shift is triggering major changes across Kroger's business, leading to significant closures and job cuts.

The continued rise in popularity of online shopping is transforming consumer habits and the retail industry. With the ability to fill a digital cart and schedule a convenient pickup or delivery time, many customers see little need to step inside a store.

According to Capital One Shopping, U.S. online grocery sales increased 104% during the pandemic and are projected to grow 12.3% annually through 2029. In 2025, more than 148 million Americans, nearly 52% of the population, are expected to buy groceries online.

Harris Teeter will close two fulfillment centers

Kroger-owned Harris Teeter will permanently close its fulfillment center at 6306 Gravel Avenue in Franconia, Virginia, affecting 91 employees, according to a WARN notice filed November 18. The facility will begin winding down in early to mid-January 2026 and is expected to be fully closed by February 1, 2026.

Another Harris Teeter fulfillment center at 7106 Geoffrey Way in Frederick, Maryland, will also shut down on February 1, affecting 80 employees, as confirmed by a WARN notice filed the following day.

Kroger adds more closures

The two Harris Teeter shutdowns will join Kroger's growing list of closures. The company recently confirmed on its website that it will close five fulfillment facilities in Pleasant Prairie, Wisconsin; Frederick, Maryland; Groveland, Florida; Nashville, Tennessee; and Oklahoma City, Oklahoma, in January 2026, as part of an effort to streamline operations and improve delivery efficiency.

Kroger facilities closing

• Pleasant Prairie Facility: 211 jobs Source: DWD

• Groveland Facility: 935 jobs Source: Florida Commerce Rockledge Facility: 53 jobs Tampa Facility: 234 jobs Jacksonville Facility: 181 jobs

• Frederick Facility: 83 jobs Source: Maryland Department of Labor

• Nashville Facility: No information as of November 27 Source: TN

• Oklahoma City Facility: No information as of November 27 Source: The Oklahoman

Why Kroger is closing fulfillment centers

The closures are part of a broader restructuring plan to boost e-commerce profitability. Kroger (KR) expects to contribute to a $400 million increase in e-commerce operating profit by 2026, which will allow it to reinvest in lower prices, improved store conditions, and stronger margins.

More Closures:

• 100-year-old grocery chain’s stores acquired by rival after closures

• 98-year-old beer store chain has closed nearly 100 locations so far

• 61-year-old fast-food chain quietly closes dozens of locations nationwide

However, the company anticipates about $2.6 billion in impairment charges in the third fiscal quarter of 2025, due to the closures and the underperformance of its automated fulfillment network. Despite this financial hit, Kroger says comparable sales should remain unaffected.

"We are building on a strong foundation with five consecutive quarters of double-digit eCommerce sales growth and increased profitability improvements," said Kroger CEO Ron Sargent in the news release.

"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."

What the closures mean for customers

Kroger operates 1,238 grocery stores across 16 states, but hasn't had physical locations in Florida since the late 1980s. To fill this gap, the company relied on Florida-based fulfillment centers to provide grocery delivery.

With those Florida facilities closing, the state will lose access to Kroger's entire grocery delivery program. Customers in Oklahoma City, Oklahoma; Nashville, Tennessee; Chicago, Illinois; and Pleasant Prairie, Wisconsin will only lose local access in those markets.

According to Fox35 Orlando, Florida customers were notified via email that final orders must be placed by January 31, with delivery ending on February 1. Kroger’s website states that starting January 7, all remaining delivery options will come directly from its stores instead of automated centers.

For Harris Teeter customers in Virginia and Maryland, delivery services will continue through its third-party delivery partners, with access to the full product assortment, Kroger confirmed to Grocery Dive via email.

More Kroger cuts ahead

Fulfillment centers aren't the only part of Kroger's business facing cuts. In its first-quarter earnings report for fiscal 2025, the company revealed plans to close 60 underperforming stores by the end of 2026.

Kroger’s recent layoffs

• February: Eliminated 200 positions across three Cincinnati office sites Source: Cincinnati Business Courier

• March: Laid off employees at 84.51°, Kroger’s retail data science and analytics subsidiary Source: The Cincinnati Enquirer

• August: Cut around 1,000 corporate jobs, primarily impacting its Technology and Digital division Source: The Street

Grocery delivery evolves

As consumer preferences evolve, Kroger is heavily relying on its third-party partners to expand delivery coverage and strengthen its retail media business.

The company expanded its partnership with Instacart, which will become its primary delivery fulfillment provider, and Kroger will be among the first to integrate Instacart's AI tool, Cart Assistant, into its app. The retailer has also broadened its relationship with DoorDash and Uber Eats.

"Our differentiated approach, combining the proximity of our stores with high-capacity automation, the wide assortment of the fresh food they love, allows us to fulfill more trips for the families we serve," said Kroger Executive VP and Chief Digital Officer Yael Cosset.

Kroger will continue to use automated customer fulfillment in high-demand markets while piloting store-based fulfillment in busy regions to enhance its fulfillment capabilities and improve the in-store experience.

In the second quarter of fiscal 2025, total sales increased 0.08%, with same-store sales up 3.4%. This growth was partly driven by a 16% rise in e-commerce sales.

"Shifts in consumer preferences present an opportune moment for both shippers and providers to reassess their approaches," said McKinsey & Company. "Decisions regarding cost, speed, reliability, transparency, flexibility, and sustainability can all be reevaluated. Getting value propositions right will rely on understanding the priorities of specific customers, as there is no one-size-fits-all solution."

Related: Kroger announces unexpected closures ahead of holiday season

This story was originally published by TheStreet on Nov 28, 2025, where it first appeared in the Employment section. Add TheStreet as a Preferred Source by clicking here.