Kroger is analyzing its automated order fulfillment network to enhance profitability and reduce costs, according to interim CEO Ron Sargent. The focus will shift towards store-level fulfillment to expedite grocery delivery services. E-commerce sales surged by 16% in Q1, with delivery orders surpassing pickup transactions for the first time. While Kroger has invested heavily in automated infrastructure, Sargent emphasized leveraging stores for digital growth to lower delivery costs. Kroger plans to open two new fulfillment centers in 2026, with a focus on high-demand areas. An update on the analysis will be shared in the next earnings call.

Source: https://www.supplychaindive.com/news/kroger-is-reviewing-its-automated-e-commerce-fulfillment-network/759926/