(Reuters) -U.S. grocer Kroger said on Tuesday it would close certain automated fulfillment facilities and incur an impairment charge of about $2.6 billion in the third fiscal quarter of 2025.
Kroger said the closure of these automated fulfillment facilities would have a neutral effect on its core sales.
The company, which has focused on promotions and maintaining low product prices to cater to value-seeking consumers, said on Tuesday it expanded its partnership with online grocery and food delivery firms such as Instacart , DoorDash and UberEats as a part of its efforts to reach new customers and deliver products in 30 minutes.
It also expects to improve e-commerce profitability by about $400 million in 2026, which will be used to boost customer experience through lower prices and better store conditions.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Maju Samuel)
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