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Kroger Expands Florence, Kentucky, Operations-Distribution Complex

07/10/2018
Only nine months after opening, a Kroger distribution center will add 250 full-time associates, as the company invests nearly $18 million in Florence, Kentucky. The facility will support its e-commerce and digital services.

Kroger will purchase new equipment and upgrade technology at its 674,000-square-foot facility on Mount Zion Rd., which opened in October 2017 as a replenishment center to service the company’s direct-to-store distribution centers across the eastern half of the US.

According to state officials, the new project will further support the company’s growing ecommerce and digital offerings. The facility currently employs approximately 80 associates.

“The facility has been a great success for the company since it opened, and we are excited to expand and continue our growth with the support of Boone County and the state of Kentucky,” said Frank Bruni, Kroger’s Vice President of Supply Chain and Logistics.

“We appreciate the partnership with local leaders and the community, and look forward to adding 250 new associates from the area to help us redefine the grocery customer experience through Restock Kroger,” he added.

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority in June preliminarily approved the company for tax incentives up to $1 million through the Kentucky Business Investment program.

The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets. In addition, Kroger can receive resources from the Kentucky Skills Network.

Kroger was founded in 1883 by Barney Kroger in downtown Cincinnati, where it remains headquartered. The company since grew to be the largest traditional grocer in America with 2,800 stores in 35 states, and nearly a half-million associates. Kroger maintains 114 stores and seven jewelry stores in Kentucky, employing 21,225 people.

The commonwealth also is home to four manufacturing and distribution facilities, as well as a regional headquarters in Louisville.

Boone County Judge-Executive Gary Moore said, “Kroger continues to find ways to innovate and improve the customer grocery experience,” Judge-Executive Moore said. “The Mount Zion facility will be a hub for Kroger’s e-commerce and digital innovations and we are very pleased that jobs created by this expansion will contribute to not only the livelihood our of region, but also the redefinition of the grocery industry.”

Kris Knochelmann, judge-executive of Kenton County and current Northern Kentucky Tri-ED board chair, said, “Northern Kentucky continues to attract businesses that benefit from the extensive logistics infrastructure we have here. Our region is perfectly suited to complement Kroger’s distribution expansion efforts and we recognize the significant investments Kroger continues to make in Northern Kentucky, which has a positive impact on our region and our community.”

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