In an effort to increase e-commerce profitability, Kroger has announced the closing of three of its automated fulfillment centers, including the Groveland location. It will cease operations entirely by the end of January 2026, leaving 1,400 employees with job uncertainty right before the holiday season.

The closings will impact consumers and employees.  The move towards partnerships with third party vendors who deliver and away from its own delivery system will lower operating costs and create higher profits, according to Kroger. While this may be a positive on the business front for Kroger, the ripple effect in the homes of patrons and the livelihood of its employees will be felt locally. While they have seen an increase with digital sales, Kroger looks to increase profitability by $400 million in 2026 through the restructuring of the automated facilities.

Third party vendors like Instacart, DoorDash and Uber will take over the grocery chain’s at home delivery service in other facilities that remain operational, with Instacart becoming the primary provider. However, that does not seem to apply to the Groveland location with the announcement of a complete shutdown.