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Kroger will invest $17 million in its distribution centre in Florence, Kentucky, to ramp up production and create 250 new jobs.
The 674,000-square-foot ambient distribution site opened last year after Kroger’s $60 million investment to service the company’s direct-to-store distribution centres in the east of the US, as well as Kroger’s growing e-commerce and digital business.
The project is supported by a Kentucky Business Investment incentive of up to $1 million over ten years. The company’s annual eligibility for the performance-based tax credit is linked to investment, job creation and retention, and average hourly wage targets.
Kroger vice president of supply chain and logistics Frank Bruni said: “This significant investment in the distribution facility and our associates will allow us to more efficiently reach our customers and help to deliver on new ways to shop with Kroger, as we redefine the grocery customer experience through ‘Restock Kroger’.
“We have long appreciated the support from Boone County and the state of Kentucky, and look forward to growing together.”
Kentucky Governor Matt Bevin added: “It was less than a year ago that Kroger opened its distribution centre in Boone County, and it is clear from this additional investment that the company recognises northern Kentucky as the best possible location for further success and growth.
“Distribution and logistics is a thriving industry in the commonwealth, and this announcement is just the latest confirmation of that fact. We greatly appreciate Kroger’s confidence in the northern Kentucky region and its ongoing commitment to investing and growing in our state.”
Earlier this year Kroger completed the $2.15 billion sale of its convenience store business to EG Group. The unit spans 18 US states and includes QuickStop and KwikShop. It generated revenue of $4 billion in 2016.
In May Kroger bought US meal kit company Home Chef for an initial price of $200 million as it aims to “significantly accelerate availability of meal kits”. The cost of the firm could rise to $700 million over the next five years if certain milestones are met.
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