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Area Development - Site Selection, Facility Planning and Workforce Development

Kroger Fulfillment Network Plans Louisville, Kentucky, E-Commerce Hub

01/28/2022
Kroger Fulfillment Network, a wholly owned subsidiary of the Kroger Co., plans to locate a new e-commerce spoke facility in Louisville, Kentucky. The project is expected to create 161 jobs.

The company will lease an existing 50,000-square-foot facility on Robards Lane. The new location will expand Kroger’s fresh grocery delivery capabilities and support its high-tech customer fulfillment center in Monroe, Ohio. Operations are expected to begin in late 2022.

“We’re proud to expand the Kroger fulfillment network to Louisville,” said Gabriel Arreaga, Kroger’s senior vice president and chief supply chain officer. “The new service is an innovative addition to the expanding digital shopping experience available to Kroger customers. The network’s delivery spoke facility will provide unmatched customer service and improve access to fresh food in areas eager for the variety and value offered by Kroger direct to their homes.”

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $2 million in tax incentives based on the company’s investment of $4.1 million and annual targets of; creation and maintenance of 161 Kentucky-resident, full-time jobs across 10 years, and paying an average hourly wage of $30 including benefits across those jobs.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments. In addition, Kroger can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

“I want to thank leaders at Kroger not only for this announcement, but also for their continued commitment to the commonwealth over many years,” Governor Andy Beshear said. “Kroger has long been a vital part of Kentucky’s growing economy, and this new location helps ensure that will continue to be the case for years to come. I’m grateful for the company’s expanding presence in our state.”

Kroger has grown into the largest traditional grocer in the U.S., with more than 2,700 stores in 35 states, nearly a half-million associates and annual sales in excess of $132 billion. Kroger maintains 112 stores in Kentucky, employing more than 19,000 associates. Kentucky is also home to four manufacturing and distribution facilities that service the company, as well as a regional headquarters in Louisville.

“Today’s announcement is the latest way that Kroger is showing its commitment to the Louisville market,” added Louisville Mayor Greg Fischer. “Kroger has long been a valued partner in our community, providing jobs, reinvesting in our city through continued growth and giving back through its charity. Thank you to the Kroger team!”

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