Kroger closing fulfillment centers, Pleasant Prairie included
PLEASANT PRAIRIE, Wis. (CBS 58) -- Kroger is announcing the closure of its fulfillment center in Pleasant Prairie. It's one of three centers the company announced will be closing by February.
The facility in Pleasant Prairie just opened in early 2022, but less than four years after its opening, and bringing hundreds of jobs, it's set to close.
"I think it's terrible. It just opened not that long ago, and all these people losing their jobs before the holidays - everybody's already struggling enough," shared Tayler Scott, who was shopping at a Kroger store in Pleasant Prairie.
Mariano Rosales said his son used to work at the Kroger facility. "it's a discouragement for a lot of people in this area," he said. "It was a good facility." He went on to say the closure is a tragedy. "Because I've heard of other areas and stuff closing other facilities. I don't know what's going on with the economy right now," Rosales said.
Kroger said this is part of a plan to focus on E-commerce, specifically with delivery services. It's expanding partnerships with Instacart, DoorDash, and Uber Eats, promising delivery in as little as half-an-hour.
We reported on the announcement of the facility back in 2020. The $112 million, 350,000-square-foot fulfillment network facility was supported by a grant from the Wisconsin Department of Transportation (WisDOT) economic assistance grant to help Kenosha County make roadway improvements.
Kroger's CEO and chairman Ron Sargent said in a press release this move will "make shopping easier, offer faster delivery times, provide more options to our customers, and we expect to deliver profitable sales growth as a result."
These updates will reportedly cause a $2.6 billion hit during the third fiscal quarter but improve E-commerce profitability by $400 million next year.
The other two facilities closing are in Maryland and Florida. According to a layoff notice, the closing impacts 211 employees at the fulfillment center. Operations will reportedly "wind down" in January 2026, with a permanent closure of the entire location on Feb. 1, 2026. Employees will continue to get their regular pay and benefits until Feb. 1, according to the notice.