Kroger Stock (KR) Jumps on Delivery Center Closures

Kroger (KR) stock was up on Tuesday after the grocery chain announced that it would close some of its automated fulfillment centers. These centers handle grocery delivery to customers. The company will shut down its fulfillment centers in Pleasant Prairie, Wis.; Frederick, Md.; and Groveland, Fla., in January. It intends to monitor its remaining delivery centers as well.

According to Kroger, these closures will result in a $400 million positive impact on its e-commerce operating profit in 2026. It also noted that these closures will result in charges of $2.6 billion in its third fiscal quarter of 2025. The retailer also said that customers will benefit from this change with lower prices and better store conditions.

Kroger revealed that it will expand its partnerships with Instacart (CART) and DoorDash (DASH) to make up for the closure of its fulfillment centers. To go along with this, the company said it will launch a new customer experience with Uber’s (UBER) Uber Eats Marketplace in early 2026. Combined with its own fulfillment centers, Kroger said these partnerships will create a “comprehensive hybrid fulfillment network.”

Kroger Stock Movement Today

Kroger stock was up 1.35% on Tuesday, extending a 12.05% year-to-date rally. The shares have also increased 13.77% over the past 12 months.

KR stock trading activity today was muted. As of this writing, roughly 3.7 million shares of KR have changed hands. That’s still below the stock’s three-month daily average trading volume of about 6.13 million units.

Is Kroger Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Kroger is Moderate Buy, based on eight Buy and four Hold ratings over the past three months. With that comes an average KR stock price target of $79.36, representing a potential 18.36% upside for the shares.

See more KR stock analyst ratings