The Kroger Co. plans to invest $391 million to build a new automated distribution center in Simpson County, Ky., expanding its supply chain footprint in the state and creating approximately 430 new jobs.
The facility will operate as a full-line distribution center and feature “scalable and automated” operations, according to an announcement from Kentucky Gov. Andy Beshear.
Kroger has not disclosed whether the site will use its advanced customer fulfillment center (CFC) model developed with U.K.-based online grocer Ocado Group.
Kroger introduced the CFC concept in 2018 as part of a broader e-commerce strategy combining robotics, machine learning and vertically integrated operations to support fast and affordable grocery delivery. However, the company has since scaled back parts of that network.
In November 2025, Kroger said it would close CFC facilities in Pleasant Prairie, Wis.; Frederick, Md.; and Groveland, Fla., in January 2026 as part of an effort to optimize its fulfillment operations.
The company also said it would not move forward with a previously planned CFC opening in Charlotte, N.C. Kroger had earlier shuttered three CFC cross-docking “spoke” facilities in March 2024.
As part of the retrenchment, Kroger agreed to make a one-time $350 million cash payment to Ocado to compensate for reducing its original CFC expansion plans.
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Ocado said it will continue working with Kroger to operate the five currently active CFCs in Monroe, Ohio, Atlanta, Denver and Detroit, with Kroger planning to add capacity at the Detroit facility in 2026.
Kroger also still plans to open a new CFC in Phoenix that will incorporate Ocado’s “AutoFreezer” technology.
In addition to the new distribution hub, Country Oven, a bakery owned by Kroger, is pursuing a separate $204 million expansion in Bowling Green, Ky. Kroger operates nearly 110 stores in Kentucky and employs more than 19,000 associates across the state.
“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,” Beshear said.
“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.”
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