Kroger is closing 3 spoke facilities in its Texas and Florida e-commerce operations
Kroger is shuttering three spoke facilities in its Texas and Florida e-commerce operations
NEW YORK — NEW YORK (AP) — Kroger is shuttering three spoke facilities in its Texas and Florida e-commerce operations, the grocery chain confirmed this week.
The cross-docking facilities — located in Austin, San Antonio and Miami — will be closed at the end of May, a Kroger spokesperson told The Associated Press Thursday, adding that all impacted associates had been offered other opportunities within the company.
“Despite our best efforts, including the 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," Kroger's spokesperson said.
The spokesperson added that that the retailer «remains committed to growing its e-commerce offerings, delivering fresh food to more communities across the U.S.”
These kind of spoke facilities extend the reach of Kroger’s network with British online retailer Ocado. Ocado's larger automated facilities assemble orders, which are then shipped to the cross-docking spokes and placed into smaller delivery trucks.
Amid rising competition in e-commerce particularly seen during the pandemic era, Kroger and Ocado had continued to expand their partnership over recent years — including through the construction of additional fulfillment centers and development in-store order capabilities.
The cross-docking spokes set to close in Austin and Miami were opened in March and February of last year, according to Kroger's spokesperson, while the one in San Antonio was opened in August 2022.
The Austin and San Antonio facilities have been receiving orders from a larger automated shed in Dallas, which was
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