AUSTIN, Texas — Kroger is closing its Austin delivery center in late May.
The grocery chain announced it will cease delivery services in Central Texas on May 25. Kroger only offered delivery in the Austin area and has no physical location nearby. Delivery services were made possible through the company's facility at 2401 Ferguson Lane, which it is now shutting down.
"We do not make these decisions lightly, and we understand the impact this has on associates, customers and communities. Kroger’s commitment to innovation means that we test and learn quickly to identify the most effective ways to deliver fresh, affordable food to our customers," Kroger said in an announcement on its website. "Despite our best efforts, including the support from new customers, learnings from other locations and the incredible work of our associates, these facilities did not meet the benchmarks we set for success."
Kroger first announced plans for the Austin facility last spring. The company said at the time that all orders placed through its delivery service would be picked up at a fulfillment facility in Dallas and placed in climate-controlled vehicles to travel to Austin. Once the orders arrived at the "spoke" facility on Ferguson Lane, they would be checked and placed on refrigerated trucks to be delivered directly to customers' doors.
KVUE's media partners at the Austin American-Statesman report that the Dallas fulfillment center will not be impacted by the closure of the Austin spoke facility. However, Kroger said in addition to the Austin facility, it is also closing spokes in San Antonio and South Florida.
A WARN letter sent to the Texas Workforce Commissions shows that Kroger's closure of the Austin facility will result in 52 layoffs.
Kroger said Friday, May 24, is the last day for customers in Austin, San Antonio and South Florida to order online. Saturday, May 25, will be the last day of delivery, and the spokes will officially close that day.
Through May 24, customers can continue to shop with Kroger Delivery, and their coupons and gift cards will still be accepted. Customers who had paid Boost by Kroger memberships will receive a 100% refund within 30 days for both monthly and annual subscriptions.