Kroger is moving forward with plans to build a major new distribution center in Franklin, Kentucky, expanding its logistics footprint as the company reshapes its supply chain. The full-line facility, planned for Simpson County, will feature scalable and automated operations designed to support Kroger’s regional store network. Construction timing has not yet been announced, but the project carries an estimated investment of $391 million and is expected to create approximately 430 full-time jobs.
The new center will serve Kroger’s Nashville Division, replenishing stores across the region while strengthening the company’s ability to deliver fresh and affordable food. Kroger said the project represents a long-term investment in both its supply infrastructure and the local community, emphasizing continued collaboration with state and local officials as development moves ahead.
The announcement comes as Kroger continues a broader overhaul of its supply chain and fulfillment strategy. This year, the company reevaluated its e-commerce automation efforts launched in partnership with Ocado in 2018, ultimately scaling back after a comprehensive review. Kroger has since shifted toward greater use of in-store fulfillment and third-party e-commerce partners, closing several automated fulfillment centers and canceling additional planned facilities in other states.
Kroger has also undergone leadership changes during this period of transition, including the appointment of former PetSmart executive Ed Oldham as head of sourcing, while the search for a permanent chief executive officer continues. In Kentucky, Kroger already operates nearly 110 stores along with four manufacturing and distribution facilities, and the Franklin project would further solidify the company’s presence in the state as it adapts to evolving consumer demand and operational priorities.