Kroger to take $2.6 billion impairment charge as it closes automated fulfillment centers
Kroger said it will close certain U.S. fulfillment centers as part of updates to its eCommerce plan and expects impairment and related charges of approximately $2.6 billion in its third fiscal quarter of 2025. The company expects the changes to improve eCommerce operating profit by approximately $400 million in 2026, which matters to shareholders because the charge is large and the profit benefit is a company estimate that depends on the plan's results.
Key points
- Expected impairment and related charges of approximately $2.6 billion in the third fiscal quarter of 2025
- Facilities in Pleasant Prairie, Wis.; Frederick, Md.; and Groveland, Fla. will close in January
- Kroger expects a positive effect on eCommerce operating profit of approximately $400 million in 2026
- Kroger expects the closures to have a neutral effect on identical sales without fuel
The filing
Written by AI on Nov 8, 2026, 1:30 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on November 18, 2025.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.