Kroger To Close South Florida Distribution Center, End Deliveries In The Region
Kroger is pulling out of South Florida a little over a year after it launched a delivery service in the region.
America’s largest grocery chain is closing a 60K SF distribution center near Miami, along with locations in Austin and San Antonio, and will stop its Boost delivery service across South Florida and Central Texas on May 25.
The company said in a statement announcing the closures that the “facilities did not meet the benchmarks we set for success.” Its exit from the AVE Aviation & Commerce Center at 14350 NW 56th Court in Opa-Locka effectively ends the chain’s push into online delivery in South Florida, although Kroger will continue to operate the service in other parts of the state.
Kroger, which has no physical locations in Florida, opened the South Florida distribution center in February 2023 as one of the spokes in its online fulfillment operations in the state, which includes a 375K SF hub outside Orlando and other spokes in Tampa, Jacksonville and Cocoa Beach.
The closure will result in 109 employee layoffs in Opa-Locka and 52 in Austin, according to Worker Adjustment and Retraining Notifications filed in Florida and Texas this week.
Kroger’s Boost program provides grocery delivery to areas within 90 miles of a distribution center, meaning the Opa-Locka closure will mark the grocer's exit from South Florida.
“Unfortunately, there are no Kroger stores or Kroger Delivery options available to customers in Austin, San Antonio or South Florida,” the statement announcing the closures said.
The grocer said it will provide a refund to affected customers who were paying a $59 annual fee for the service.
“This decision does not impact the company’s other automated fulfillment centers or cross-docking spoke locations,” a Kroger spokesperson said in an emailed statement.
Cincinnati-based Kroger operates more than 2,700 locations, including those operating under its Ralphs, King Soopers and Dillon’s brands, according to FoodIndustry.com.
Walmart, which also owns Sam’s Club, technically has more locations than Kroger, and its $247B in grocery sales in 2023 far outstrips Kroger’s $148B in revenue, according to the industry publication. Costco also has more grocery market share, Axios reported, but the wholesale chain is also known for selling tires, electronics, furniture, clothes and getaways.
Kroger also operates 259 Harris Teeter locations, including one in Fernandina Beach north of Jacksonville, the company's only brick-and-mortar presence in Florida.
The pullback from online delivery comes as the Federal Trade Commission is suing to block Kroger’s proposed $24.6B acquisition of Albertsons in what would become the largest supermarket merger in U.S. history.
While it’s folding its distribution operations in South Florida and Central Texas, “Kroger remains committed to growing its e-commerce offerings, delivering fresh food to more communities across the U.S.,” the spokesperson said.
