Kroger Plans to Shutter Facilities in Texas and Florida
CINCINNATI, OH - As of May 25, Kroger will be shuttering three of its facilities. The retailer recently announced plans to withdraw from the Austin and San Antonio, Texas, and South Florida markets by closing down its delivery hubs in these locations.
"Kroger’s commitment to innovation means that we test and learn quickly to identify the most effective ways to deliver fresh, affordable food to our customers," the company said in a statement obtained by the Austin Business Journal. "Despite our best efforts, including support from new customers, learnings from other locations, and the incredible work of our associates, these facilities did not meet the benchmarks we set for success."
According to hoodline, the Austin facility alone—standing at 70,121 square feet—serves 90 different ZIP codes. While future plans after the closures have not been revealed, the retraction from Austin points to a change in strategy, as Kroger only recently began breaking into the market.
We are eager to see how this strategy plays out for the grocer, and will be sure to report when we learn more.