Kroger Co. Investing $17M to Expand KY Distribution Center

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Kroger Co. Investing $17M to Expand KY Distribution Center

By Randy Hofbauer - 07/11/2018

The Kroger Co. is expanding its distribution center in Kentucky’s Boone County with a $17 million expansion to more efficiently reach its customers while helping deliver on new ways for them to shop.

Located in Florence, Ky., the 674,000-square-foot ambient distribution center currently employs 80 associates, but is anticipated to employ another 250, the majority full-time positions, through the investment. Kroger Co. first announced plans for the center in May 2017 and opened five months later, after Kroger Co.'s $60 million investment in the replenishment center to service the company's direct-to-store distribution centers across the eastern half of the country, as well as Kroger's growing ecommerce and digital business.

Part of the Restock Kroger program, the project is supported by a Kentucky Business Investment incentive of up to $1 million over 10 years. The company’s annual eligibility for the performance-based tax credit is linked to investment, job creation and retention, and average hourly wage targets.

“We have long appreciated the support from Boone County and the state of Kentucky, and look forward to growing together," said Frank Bruni, Kroger Co.'s VP of supply chain and logistics.

The distribution facility will start to expand its team in September, and candidates can apply at jobs.Kroger.com. Currently, Kroger Co. employs 21,000-plus associates in Kentucky.

Distribution and logistics make up a thriving industry for Kentucky, said Governor Matt Bevin, making him appreciative of Kroger Co.’s confidence in the region and its ongoing commitment to investing in and growing the state.

Kentucky isn't the only area in which Kroger Co. has recently announced investment plans. Late last month, it said it is opening a new headquarters for its digital team in downtown Cincinnati, where it plans to grow headcount from 600 to more than 1,000 over the next three years. It’s continued investment in grocery technology has not gone unnoticed: One week prior, Kroger Technology was named to Computerworld’s Top 100 Best Places to Work in IT.

Cincinnati-based Kroger Co. operates 2,779 retail food stores under a variety of banner names and employs nearly half a million associates. It holds the No. 2 spot on Progressive Grocer’s Super 50 list of top grocers in the United States.