Kroger, the supermarket chain giant, is calling it quits on their online delivery service in the Texas cities of San Antonio and Austin. This news hit the streets as Kroger unveiled on their website that they plan to shut down the delivery operations which have been unable to hit the company's marks for success. According to KSAT, the move is slated for May 25, following the final opportunity for customers to place orders on May 24.
The grocery chain's return to San Antonio was short-lived, barely two years after taking a hiatus of nearly 30 years from the market. In an ambitious attempt to adapt to quickly changing consumer habits, Kroger set out to revolutionize the way we shop for groceries with a futuristic model using robots and a concept named "The Hive." However, this innovation did not translate into sustainable success. "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 said in a statement obtained by KENS 5.
The closure means more than the end ofhigh-tech deliveries; it's the shuttering of a 67,000-square-foot facility and the displacement of over 160 jobs. The decision certainly was not made in a vacuum, as the company indicated the weight of the situation. "We do not make these decisions lightly, and we understand the impact this has on associates, customers and communities," noted Kroger.
Kroger's short venture into San Antonio and Austin was part of an e-commerce expansion strategy aiming to meet customers' growing preference for online shopping. While plans to innovate the grocery space were highly anticipated, they seemingly could not fully adjust to local markets' needs. Those who subscribed to Kroger’s Boost service won't be left entirely in the lurch. The company has assured that paid Boost members will receive a full refund within 30 days for either their monthly or annual subscriptions, as conveyed by the company's website. In the meantime, shoppers can still utilize Kroger's delivery service until the final day of operation, making the most of the remaining coupons and gift cards.
For customers who have grown accustomed to the convenience and modernity of the futuristic shopping experience, the cessation of this service marks a return to previous grocery shopping methods. Information about subscription refunds and any additional details regarding the shutdown can be found on their website.
