In a seismic shift for the U.S. grocery landscape, Kroger Co., the nation’s largest supermarket operator, is effectively shuttering its entire Florida footprint, ceding ground to dominant regional powerhouse Publix Super Markets. The move, announced in mid-November 2025, involves closing three e-commerce fulfillment centers—including a key facility in Groveland—and ending grocery delivery services across the state, impacting over 1,000 jobs. This isn’t a mere operational tweak; it’s a full withdrawal from a market Kroger has struggled to penetrate for years.

Publix, with its employee-owned model and fiercely loyal customer base, has long ruled Florida’s $60 billion grocery sector. Kroger’s exit underscores the perils of national chains challenging entrenched locals, especially amid e-commerce pressures and post-pandemic shifts in consumer habits. As Daily Mail reported, ‘Kroger has announced plans to remove all of its business operations in Florida. The decision will also affect grocery centers in two other states.’

The closures cap a multi-year experiment in Florida that began with Kroger’s 2021 partnership with Ocado to build automated fulfillment hubs. But rising costs and underwhelming returns have forced a rethink, with the Groveland site—handling deliveries for Central Florida—set to shutter by January 2026.

Kroger’s Florida Foray Unravels

Kroger entered Florida not through traditional stores—none exist under its banners like Ralphs or Fred Meyer—but via delivery services powered by spoke facilities. The Groveland hub, a 100,000-square-foot operation, supported online orders from brands like Mariano’s and Murray’s Cheese. According to WESH, ‘There is no specific date yet, according to Kroger Co., but the closure is expected sometime in January 2026,’ with over 1,000 employees affected nationwide from the trio of closures.

The decision stems from a ‘comprehensive review’ of Kroger’s fulfillment network, as stated in company releases. Closures also hit sites in Pennsylvania and Virginia, but Florida’s exit is total: no stores, no delivery, no presence. Florida Today noted, ‘Kroger will stop grocery delivery in Brevard County soon, after closing its Groveland hub.’

Industry analysts point to logistics woes and competition. Kroger’s automated warehouses, meant to rival Amazon and Walmart, faced scalability issues. Delivery fees and customer acquisition costs in Publix’s backyard proved prohibitive.

Publix’s Iron Grip on Market Share

Publix commands over 30% of Florida’s grocery sales, with 1,400 stores across the Southeast, including 900+ in the state. Its fresh bakery, deli, and customer service—fueled by employee ownership—create sticky loyalty. Posts on X echo this sentiment; one user lamented, ‘Publix took out another one. First Lucky’s Market now Kroger,’ reflecting widespread views of Publix’s dominance.

Kroger’s struggles aren’t isolated. Earlier in 2025, it announced closing 60 underperforming stores nationwide, per Reddit discussions citing CBS News. In Florida, without physical stores, Kroger relied on e-commerce, but Publix’s robust app and curbside pickup eroded that edge. Grocery Dive described it as ‘the sun setting on Kroger’s time in Florida.’

Publix’s expansion fuels the narrative. The chain opened 40 new stores in 2024 and plans more, capitalizing on population growth in high-growth areas like Orlando and Tampa. Kroger’s retreat leaves room for Publix to consolidate further.

E-Commerce Shakeout Hits Hard

The closures tie to Kroger’s Ocado joint venture, launched in 2018 to deploy robotic warehouses. Florida’s Groveland was one of seven U.S. sites, but only larger customer fulfillment centers (CFCs) like the one in Louisville are proving viable. WFTV reported, ‘The Kroger Co. announced Nov. 18 it will close three eCommerce fulfillment centers at the end of January—including one in Groveland—to optimize its fulfillment network.’

Job losses are stark: 181 in Jacksonville alone, per Jacksonville.com. Kroger offers severance and relocation, but workers in rural Groveland face tough prospects. X users expressed disappointment, with one stating, ‘We loved Kroger delivery! Such a shame we are losing it. Having an alternative to Publix and their insane profit margins was great.’

This mirrors broader industry trends: Walmart and Amazon dominate online grocery, while regionals like Publix thrive on hybrid models. Kroger’s pivot focuses on fewer, larger hubs for efficiency.

Strategic Implications for Rivals

For Publix, Kroger’s exit is a windfall. Without delivery competition, it can hike margins on high-demand items. Publix’s private-label expansions and pharmacy services further insulate it. CEO Kevin Murphy has emphasized ‘customer intimacy’ in earnings calls, a contrast to Kroger’s scale-driven approach.

National peers watch closely. Albertsons, in its stalled merger talks with Kroger, faces similar regional battles. Winn-Dixie and Sedano’s persist in pockets, but Publix’s 80% market share in some counties is unassailable. ClickOrlando highlighted, ‘Kroger announced… closing three of its delivery fulfillment facilities—including the one located in Central Florida—as part of an effort to make its delivery operations faster and more profitable.’

Investors shrugged off the news; Kroger shares dipped minimally, buoyed by strong Q3 results. Yet, the Florida pullout signals caution for other expansions.

Workforce and Community Fallout

Lake County’s Groveland facility employed hundreds in a region with limited options. Local leaders decry the loss, as noted in Blue Water Healthy Living: ‘Kroger is closing three facilities, bringing major changes to the grocery chain’s presence in Florida.’ Shoppers now pivot fully to Publix or Walmart.

On X, Cincinnati-area users—Kroger’s hometown—mourned, with posts like ‘Kroger is dropping Florida, again. Publix is too tough.’ This retreat echoes past failed pushes, including store trials in the 1990s.

The episode highlights grocery’s Darwinian evolution: adapt to locals or perish. Publix’s model—vertically integrated supply chains, no debt, and fanatical service—sets the bar.

Looking Ahead: Kroger’s Network Overhaul

Kroger will redirect resources to 20 planned CFCs and spoke upgrades, aiming for nationwide coverage by 2028. CEO Rodney McMullen stated in a release, ‘These changes position us to better serve customers.’ Florida consumers, however, return to status quo ante, dominated by Publix’s green aprons.

As Jacksonville.com asked, ‘Kroger closing Florida fulfillment center. Can you still place delivery order?’ The answer is no—for now, barring partnerships.

This saga cements Publix as Florida’s grocery king, a lesson in regional resilience amid consolidation waves.