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00:02Kroger will close three automated fulfillment centers in Florida, Maryland, and Wisconsin
00:07and book a $2.6 billion charge tied to the closures and the underperformance of its automated network,
00:13according to the Wall Street Journal.
00:15The company said the move will improve e-commerce profitability by about $400 million next year
00:20and have a neutral effect on same-store sales, excluding fuel.
00:24Kroger will shift its e-commerce strategy by relying more on stores and third-party delivery partners,
00:29expanding ties with Instacart and DoorDash, and preparing to launch on Uber Eats next year.
00:34CEO Ron Sargent said faster delivery, simpler shopping, and profitable sales growth
00:39are the goals as the company expects customer traffic from delivery partners to boost retail media revenue.
00:44For all things money, visit Benzinga.com.
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