KROGER CO (KR): restructuring charge — Kroger to close three automated fulfillment centers; expects $2.6B impairment charge in Q3 2025

KROGER CO

Closes facilities in Pleasant Prairie, WI; Frederick, MD; and Groveland, FL in January 2026.
Impairment charge of ~$2.6B in Q3 2025 due to closures and underperforming automated fulfillment network.
Expects eCommerce profitability improvement of ~$400M in 2026 through simplified hybrid model.
Expands Instacart, DoorDash, Uber Eats partnerships to offer delivery in as little as 30 minutes.
Maintains neutral effect on identical sales without fuel; store-based and automated fulfillment continue.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

KROGER CO announced a impairment with charges of approximately $2.6 billion affecting certain fulfillment centers in the United States.

Type: impairment
Charge: approximately $2.6 billion
Affected area: certain fulfillment centers in the United States

Exact text from the filing

On November 18, 2025, The Kroger Co. (“Kroger” or the “Company”) announced updates to its eCommerce plan. In connection with the foregoing, the Company will close certain fulfillment centers in the United States. The Company expects to incur impairment and related charges in the third fiscal quarter of 2025 of approximately $2.6 billion as a result of these closures and the rest of the automated fulfillment network not meeting financial expectations.

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Source: SEC EDGAR

accession 0001104659-25-113746

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