Kroger Stock Rises on Strategic Fulfillment Center Closures
Kroger shares gained 1.35% Tuesday as the grocery chain announced plans to shutter three automated fulfillment centers in Wisconsin, Maryland, and Florida by January. The MOVE signals a strategic pivot toward third-party delivery partnerships over owned infrastructure.
The closures will result in $2.6 billion in restructuring charges during fiscal Q3 2025 but are projected to boost e-commerce operating profit by $400 million by 2026. Kroger emphasized these savings will translate to lower consumer prices and enhanced store experiences.
To maintain delivery capacity, Kroger is expanding collaborations with Instacart and DoorDash while preparing to launch Uber Eats Marketplace integration in early 2026. This hybrid model combines proprietary facilities with gig-economy platforms to create what executives describe as a 'comprehensive fulfillment network.'
