Kroger has announced that it will close the Opa-locka FL, Austin and San Antonio TX. Delivery Warehouses each approximately 70,000 square foot in extent.  These facilities were intended to allow the company to extend the reach of Ocado automated fulfillment centers. The Florida location was linked to the Groveland fulfillment center and the two Texas units interacted with the Dallas, TX. fulfillment center opened in 2022.

It was the intent of Kroger to serve consumers in south Florida without a brick-and-mortar presence by direct delivery using the spoke arrangement.

Kroger has achieved a significant increase in digital sales mostly with pick-up but also delivery amounting to $12 billion in FY 2023. CEO of Kroger, Rodney McMullen pointed to the lowered cost with increased volume and the application of technology to expedite delivery that increased by 24 percent over the year.

Cited in Supermarket News, a spokesperson stated, “Our commitment to innovation means that we test and learn quickly to identify the most effective ways to deliver fresh, affordable food to our customers.  Despite our best efforts including the support from customers and the incredible work of our associates these facilities did not meet the benchmarks we set for success.”