Dive Brief:
- Kroger plans to build a distribution center in Franklin, Kentucky, according to a Thursday press release from the Office of Gov. Andy Beshear.
- The full-line distribution center will be equipped with scalable and automated operations to aid Kroger’s supply in the region. Kroger did not disclose when the project will break ground.
- The $391 million facility, which will be located in Simpson County, will create about 430 full-time jobs, per the release.
Dive Insight:
Kroger is in the midst of reworking its supply chain footprint and has made significant changes to its operations this year.
For instance, the grocery chain recently backtracked on its e-commerce automation project launched alongside Ocado in 2018 following a full site analysis.
Last month, Kroger said it was closing three of its automated fuflillment centers in January, instead opting to leverage in-store fulfillment and third-party e-commerce partners. More recently, the grocer canceled plans to open an automated e-commerce fulfillment facility in North Carolina in addition to announcing the closure of a spoke facility in Tennessee.
Kroger also saw a change in leadership this year, welcoming former PetSmart executive Ed Oldham as head of sourcing in July. Meanwhile, the grocer’s search for a permanent CEO is still ongoing.
The upcoming distribution center will replenish stores and serve Kroger’s Nashville Division, a spokesperson said in an email.
“A new distribution center in Franklin, Kentucky will enable Kroger to provide fresh, affordable food to more customers and invest in the local community,” the spokesperson said. “We appreciate the ongoing collaboration with local and state officials as we move this project forward.”
The grocery chain currently operates nearly 110 stores in Kentucky, per the release. Kroger also operates four manufacturing and distribution facilities in the commonwealth.
Sam Silverstein contributed reporting for this story.
