Kroger Closes Spoke Facilities in Texas, Florida

Kroger recently revealed it is shutting down three of its spoke facilities across Texas and Florida, according to the Associated Press. The locations play a central role in the retailer’s ecommerce operations in these areas.

The facilities, which are located in Austin, San Antonia, and Miami, will close at the end of May and all impacted employees have been offered other opportunities with the grocer, according to a report.

“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,” a Kroger spokesperson told the Associated Press. The retailer “remains committed to growing its ecommerce offerings, delivering fresh food to more communities across the U.S,” added the spokesperson.

The spoke facilities extend the reach of Kroger’s ecommerce network, developed in partnership with online retail technology firm Ocado. The larger facilities assemble orders which are then shipped to the cross-docking spoke locations before being placed onto delivery trucks. Full Story