“It’s terrible”: Two cities in Illinois complains as grocery store Kroger shutdown

According to the recent news, the company said on Wednesday that two Kroger grocery stores in Green County are scheduled to close over the next month. The Cincinnati retailer, which is the largest supermarket chain in the United States by revenue with 2,920 stores across the country, has stores in Carrollton and Whitehall.

Many of customers who used to shop at Kroger, said that It will be difficult for them to shop for far away. Aside from Kroger, the closest grocery stores to White Hall are 20 miles away, in Greenfield, Jerseyville, and Jacksonville. Stats said any of these could be a long journey.

Two cities in Illinois complains as grocery store Kroger shutdown

They hope the town will get another grocery store, he said, adding that the shortage will create problems for residents who don’t drive and instead go to the grocery. He said the gas price in the range of $ 3 a gallon makes it a problem for those who drive.

In this regard, one of the regular shoppers said that It also has to do with the products the store sells, she said, noting that Kroger sells brands that you may not be able to get elsewhere. “Either way, there will be great pain everywhere,” Monroe said. Some areas south of Interstate 80 in northern Illinois could be considered a food desert, according to state representative C.D. Davidsmeier, indicating that he is concerned that Kroger leaving Greene County will create desert food between Jacksonville and Jerseysville. He said that food deserts particularly affect those at or below poverty level.

Furthermore, they stated that I hope socially minded people come forward and try to come up with a solution, but at the same time, food deserts are a thing in regular conversation in Springfield,” David Meyer said. “We will definitely create opportunities to expand these services in these communities.”

Kroger spokesman, Eric Halvorson, said the decision to close the stores came after an extensive assessment of the stores’ financial performance. Carrollton officials asked what potential incentives the city could offer to prevent the Carrollton store from closing but were told that a decision had been made. “As a city, we are working to keep our only grocery store open,” read a press release issued by the city. We’ve been with the Kroger for many years, and we’ve been just stopping on deaf ears,” said Debbie Dunlap, Carrollton treasurer. “The grocery store is like the color of your community, and if you don’t have a grocery store, that’s tough.” Kroger mentioned years of failure to make a profit. The company’s analysts report that the stores have not operated profitably for several years, and research indicates that neither of them has realistic prospects for a market turnaround,” the company said in a statement. Store employees were informed of the decision on Wednesday morning. The company said the decision was not a reflection of the employees or their service. What are your thoughts on this? Is Kroger really facing issues regarding sales? Let us know what you think about it in the comment section below!

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Inside Kroger’s First Automated Grocery Warehouse

Kroger introduced Ocado’s first automated online grocery warehouse this week in Monroe, Ohio, one of 20 planned in the US with the UK’s e-grocery specialist.

Kroger said the Monroe Customer Happening Center (CFC), which is about 375,000 square feet, carries thousands of popular grocery products and can fulfill thousands of deliveries orders every day. The facility can also support the fulfillment of receiving orders. The Monroe CFC debut comes around 22 months after Kroger started the nearly $ 55 million facility. Kroger announced the initial launch of the CFC when reporting its fiscal year 2020 results in early March.

Inside Kroger’s First Automated Grocery Warehouse

“We have been transforming the company constantly, and that’s another development in that transformation,” said Rodney McMullen, Chairman and CEO of Kroger, Wednesday at a virtual press conference about the Monroe CFC launch.

“If you look at the last few years, and especially in 2020, they have been a pivotal year for e-grocery commerce. We ended last year with over $ 10 billion in e-commerce revenue, and we grew 116% year-over-year. One of the things we have committed to. Is that by 2023, we will double our digital business in the future. This really makes Kroger one of the leading e-commerce platforms and companies in America.”

Using artificial intelligence, advanced robotics, and automation, Monroe CFC is designed to provide more seamless and efficient execution, picking, and delivery of Kroger’s online grocery orders. Inside, there are more than 1,000 robots containing bags of pre-made products and customer orders that move through massive 3D networks – dubbed “The Hive” – ​​that are managed by air traffic control systems. When order delivery times approach, robots retrieve products from The Hive and bring them to pick-up stations, where items are sorted for delivery. Algorithm’s control picking and sorting to ensure products are intelligently packed, with fragile items on top and bags evenly weighted.

Then, the packed orders are loaded into a Kroger Delivery truck which is temperature controlled and can hold up to 20 orders. Machine learning algorithms weigh factors such as road conditions and fuel efficiency to optimize delivery routes. Each CFC covers a delivery radius of up to 90 miles. Upon unveiling their partnership in May 2018, Kroger and Ocado Group said they plan to open 20 CFCs in the United States over the next three years. To date, Kroger has announced 10 CFCs. With areas ranging from 135,000 to 375,000 square feet. Besides the Monroe facility, it includes locations in Groveland, Florida; Forest Park, Georgia; Dallas. Frederick, Maryland; Phoenix. Pleasant Prairie, Wisconsin; And Romulus, Michigan, plus two unspecified locations in the Pacific Northwest and West. Depending on its size, Ocado CFC will equal sales of about 20 stores, according to Kroger. At full capacity, annual per-unit sales – the Monroe CFC has seven units – is expected to range from $ 80 million to $ 100 million.

The Kroger Delivery network will also include smaller facilities as well as magnified locations that will expand the area each CFC serves beyond the 90-mile radius. The Groveland facility, which is now under test launch and is expected to start fulfilling customer orders later this spring, represents a new market area for Kroger – Florida, where it currently has no stores. We’re really excited about Florida. When you look at the research, we find that in different parts of the state, Kroger has a different name distinction. But when you look at the state in general, about 55% of customers know the Kroger name, and they know we’re in the grocery business.” And we have a lot of respect for the freshness of our products, friendly service, our own brands and those things, McMullen said during a Q&A, adding that Florida has a large number of people who have moved there from the Midwest. What are your thoughts on this? Have you tried the new delivery app? What is your experience? Let us know in the comment section below!

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Kroger Starts Home Delivery: Should Real Estate Investment Trusts Be Happy?

Kroger is now starting a takeover showcase of Amazon Walmart and other fierce competitors in the fast-growing online grocery delivery business.

The company’s new service relies on robots doing their job in highly automated warehouses, starting with a 375,000-square-foot facility already launched about 30 miles north of Kroger’s headquarters in Cincinnati, and on Kroger employees making their own deliveries. “It’s another piece – an important piece to serve our customers wherever they want, whenever they want,” says Rodney MacMullen, Kroger’s chief executive, in an article published today by The Enquirer after he toured the facility.

This warehouse is expected to handle thousands of digital orders daily for delivery to consumers in markets stretching from Cincinnati to nearby Dayton, Ohio, and to Louisville, Kentucky and Indianapolis. The Enquirer says the $ 55 million facility, which has been in test mode for the past month, will be the hub for speaking operations to be set up in those cities, and a similar flexible opening is underway in Orlando, Florida, a suburb of Groveland, in a warehouse of Expected to serve as a hub for delivery to markets from Tampa to Miami. Also on the drawing board are warehouses in Atlanta; Dallas. Frederick, Maryland; Phoenix. Pleasant Prairie, Wisconsin; And Romulus, Detroit, Michigan.

The Enquirer says Kroger is also looking at locations in the Pacific Northwest and Western states, and as the network expands, Kroger will announce additional locations. Kroger announced for the first time in 2018 that it had partnered with Ocado (OTCMKTS: OCDDY), a British digital-only retailer, to ramp up a network of 20 automated warehouses in this side of the pond. The investment extends to people, too. Kroger says it will make its own deliveries, bypassing Instacart and the like, to benefit company employees in the Kroger-branded trucks, which it says will help ensure consistency and reliability. The company is also considering cutting delivery charges of $ 9.95 for deliveries ordered in advance a few days in advance, says The Enquirer. And those pivot warehouses and smaller amplifiers? These could be the prime properties of the future for industrial REITs and local developers. One might also wonder if doing too much of the warehouse would break up the company’s stores, but my intuition is probably not much. People love to shop by themselves when they can, as we recently covered in this: “Instacart says online grocery shopping isn’t just a trend.” What is your take on this? Let us know in the comment section below!

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Is Kroger really Closing Stores Due to Non-Preforming Graph?

Kroger closed two stores in Southern California worth more than $ 4 an hour under the “Hero Salary” Act. The Kroger retail chain closed two stores in California on Saturday after Long Beach City approved the “hero pay” Act of the Coronavirus.

Hero payroll ceremonies shatter wages of workers in retail stores and pharmacies with 300 or more workers due to the risks of the COVID-19 pandemic. In Long Beach, eligible workers saw a $ 4 an hour increase in their wages.

Is Kroger really Closing Stores Due to Non-Preforming Graph

Democratic Mayor Robert Garcia approved the decree in January. Other California cities have taken similar measures, with Los Angeles agreeing to a “champion pay” in March at $ 5 an hour. The move was praised by local leaders and union workers, but the measure did not go through entirely with fanfare: The California Grocery Association promptly filed a court order over a wage increase, but a federal judge denied the effort.

In response, Kroger began shutting down stores in cities with “push of champions” ceremonies. The retail chain first announced its intention to close two Long Beach locations in February, prompting protests from workers and union members. Kroger claimed that stores were “underperforming” and that employees were given the opportunity to relocate to other locations.  Garcia responded by citing a report from the Brookings Institution that indicated that Kroger had doubled its profits and spent “nearly $ 1 billion in 2020 to buy back its shares”. The mayor has threatened to sue Kroger over the Long Beach shutdown, though it is not clear on what grounds he would do so.

A Kroger spokesperson said in February that the Long Beach City Council’s “misleading action” went beyond the “traditional bargaining process” and “applies only to some of the grocery workers in the city, but not all of them.” The company plans to close three Los Angeles locations on May 12, citing “champion salary” as a major factor in its decision.

“The mandate will add an additional $ 20 million to operating costs over the next 120 days, making the continued operation of the three underperforming sites financially unsustainable,” Kroger said in a statement. Despite our efforts to overcome the challenges we were already facing in these locations, mandating additional wages makes it impossible to run a financially sustainable business” the statement said. Now, is it really Kroger isn’t able to perform well specially after the order of hero pay? Or they planned to close stores on purpose? Let us know in comment section below!

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Kroger to raise wages again to hourly employees with $16

According to the news, the Kroger who have been in news for closing stores for not paying the hour pay to their employee have announced that they will be upgrading wages. Now, Kroger plans to increase average hourly wages this year by 50 cents to $ 16 an hour after a strong year in which digital sales have doubled in the wake of the pandemic. Cincinnati-based Kroger last year spent $ 300 million to raise the average hourly wage of its workers to $ 15.50, up from $ 15 an hour, as we did reported last month as well. It is was still in doubt if Kroger will increase wages or not.

In this regard, they have official post statement on Wednesday, El-Groqal announced that he would invest $ 350 million to raise the average wage to $ 16 an hour ahead of the 2021 Investor Day webcast.

Kroger to raise wages again to hourly employees with $16

Some of Kroger’s biggest competitors have also announced wage increases. In February, Walmart said it would raise its average wage in the United States to at least $ 15.25 an hour. And earlier this year, Costco said its starting wage would be $ 16 an hour, indicating that the average worker was already earning $ 24 an hour. Kroger said it has invested more than $ 800 million in employee salaries and training over the past three years for nearly 500,000 full-time and part-time workers. In the past year, Kroger has consistently topped sales estimates as consumers stockpile food and household necessities and flock to the Kroger website to order from their safe homes.

Now, digital sales more than doubled to $ 10 billion, helping the company beat its fourth-quarter and full-year earnings projections. Kroger’s total sales rose 8.4% to $ 132.5 billion in 2020, helping to boost profits to $ 2.6 billion for the year, up 5.6%.  A major sales metric, matched sales without fuel, increased 14.1% in 2020.

Besides Kroger stores, the grocer operates several regional supermarket chains in 35 states, including Fred Mayer, Harris Teter, Ralphs, Mariano, Frieze, Smith, King Supers, Qatar Financial Center, among others. The company has approximately 2,800 stores with than 10K workforces. Now, what are your thoughts? Do you think it is still enough? As workforces working in pandemic. Let us know in the comments section below!

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