Kroger shutting down San Antonio grocery delivery business after just 2 years

Well, that didn’t last long.

Roughly two years after expanding its grocery delivery business into San Antonio, Kroger is pulling out of the market, according to an online statement from company officials. The nation’s largest grocer is shutting down similar ventures in Austin and Miami as it downsizes its delivery footprint.

Cincinnati-based Kroger launched the service here in spring of 2022, aiming to take on hometown grocery chain H-E-B via an Amazon-style delivery model. At the time, officials said the company would create 160 jobs at a 67,000-square-foot fulfillment center near Interstate 35 and Loop 410.

That facility is now shutting down, according to the Express-News. It’s unclear how many people are facing pink slips, but the departure is playing out at a brisk pace. Kroger said this Saturday will be the last day it delivers groceries in San Antonio.

“We do not make these decisions lightly, and we understand the impact this has on associates, customers and communities,” the company said in its statement. “Kroger’s commitment to innovation means that we test and learn quickly to identify the most effective ways to deliver fresh, affordable food to our customers. Despite our best efforts, including the support from new customers, learnings from other locations and the incredible work of our associates, these facilities did not meet the benchmarks we set for success.”

Kroger last had a brick-and-mortar presence in San Antonio during the early ’90s, when it had more than a dozen stores in the market. It left in 1993 after coming to an impasse with unions representing its workers here.

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This article appears in Mar 20 – Apr 2, 2024.