Kroger to build automated $391M Kentucky distribution center
The Kroger Co. continues to plan new automated fulfillment facilities.
Kroger will spend $391 million to establish a new distribution center in Simpson County, Ky. and anticipates creating about 430 new jobs at the facility. The hub will serve as a full-line distribution center, featuring what an announcement from Kentucky Gov. Andy Beshear called “scalable and automated”” operations.
While the center will include automation, it is unclear whether it follows Kroger’s leading-edge automated warehouse concept known as a customer fulfillment center (CFC). Introduced in 2018 in partnership with U.K.-based online grocer Ocado Group, the CFC model combines vertical integration, machine learning and robotics with affordable and fast-delivery service for fresh food.
In November 2025 Kroger identified opportunities to optimize its fulfillment network by closing CFC facilities in Pleasant Prairie, Wis.; Frederick, Md.; and Groveland, Fla. in January 2026, while monitoring the remaining facilities' performance and not proceeding with the opening of a CFC in Charlotte, N.C. previously planned for 2026.
[READ MORE: Kroger seeks e-commerce profit boost by closing distribution hubs]
The retailer previously closed three CFC cross-docking facilities (known as “spokes”) in March 2024. Kroger has agreed to make a one-off $350 million cash payment to compensate U.K.-based online grocer Ocado Group for scaling back its original CFC plans.
According to Ocado, it will continue cooperating with Kroger to operate the five currently live CFCs in Monroe, Ohio, Atlanta, Denver, and Detroit, with Kroger ordering further capacity to be utilized in the Detroit facility in 2026. In addition, Ocado said Kroger still plans to open a new CFC in Phoenix that will include Ocado’s new “AutoFreezer” solution.
Country Oven, a bakery owned by the Kroger Co., is also pursuing a $204 million expansion in Bowling Green, Ky. Kroger maintains nearly 110 stores in Kentucky, employing more than 19,000 associates.
"I want to thank leaders at Kroger not only for this announcement of a new potential distribution center in Simpson County but also for their continued commitment to the commonwealth over many years," said Gov. Beshear. "Kroger has long been a crucial contributor to Kentucky’s thriving economy, and this new location helps ensure that will continue to be the case for years to come."
Cincinnati-based The Kroger Co. operates nearly 2,800 stores in 35 states across banners including Kroger, Mariano’s, Fred Meyer, Ralphs and Harris Teeter.
