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Area Development - Site Selection, Facility Planning and Workforce Development

Kroger Plans Simpson County, Kentucky, Distribution Operations

12/19/2025
Supermarket operator Kroger plans to establish operations in Franklin, Kentucky. The $391 million project is expected to create 430 jobs in Simpson County.

The company’s new full-line distribution center will feature scalable and automated operations to help supply the region. .

“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,” noted Governor Andy 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. I’m grateful for the company’s expanding presence in our state – and these 430 new jobs for our people.”.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $12 million in tax incentives based on the company’s investment of $391 million and target of creation and maintenance of 430 full-time jobs across 15 years. Additionally, KEDFA approved Kroger for up to $1 million in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing..

“We are excited to see Kroger establish a distribution facility in Franklin,” added Jim DeCesare, executive director of the Franklin-Simpson Industrial Authority. “This $400 million investment represents not just a commitment to our workforce but also to innovation and growth in our industrial sector. The projected 430 jobs will have a lasting impact on our community and enhance our region's economic landscape.”.

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..

Kroger currently operates more than 2,700 stores in 35 states..

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