Closure part of national shift in e-commerce strategy; facility once projected to add up to 500 jobs.
Frederick, MD (JK) – Kroger will close its robotic fulfillment center south of Frederick early next year, ending a five-year effort to grow the grocery chain’s online delivery presence in the region. The facility, located at 7106 Geoffrey Way off Maryland Route 85, is scheduled to shut down in January as part of a nationwide restructuring of Kroger’s e-commerce business.
Kroger has not disclosed how many jobs will be affected in Frederick. When the 350,000-square-foot site was announced in 2020, the project was expected to create 400 initial positions and add another 100 as service expanded. The center relies heavily on automation, using robotic devices to move items across a grid system.
Kroger says the closures are tied to efforts to boost online performance and attract more customers. The company projects the changes will help generate about $400 million in e-commerce profits by 2026. As part of that strategy, Kroger has expanded its partnerships with Instacart, DoorDash, and announced an incoming partnership with Uber Eats. Kroger also became one of the first grocery retailers to offer shopping through Instacart’s artificial intelligence tool, Cart Assistant.
The Frederick center benefited from several government incentives when approved, including up to $150,000 in reduced permit fees and roughly $5 million in county tax credits over 10 years. The Maryland Department of Commerce also provided a $2 million conditional loan through Advantage Maryland.
Kroger operates more than 1,200 locations across 16 states. While no Kroger-owned supermarkets operate in Frederick County, several Harris Teeter stores under the company’s brand serve customers in Montgomery County and Northern Virginia.
By Jimmy Key