Kroger Continues Expansion Plan with New Facility in Dallas
DALLAS, TX - Kroger has had its eye on growth this year, and with growth comes the need for operational support. The grocer has teamed with Ocado to construct multiple fulfillment centers, with announced locations in Groveland, Florida; Forest Park, Georgia; and Monroe, Ohio. Kroger also partnered with Penske Logistics to build a distribution center in Michigan. Expanding its distribution footprint even further, Kroger has targeted Texas, announcing plans to open a new warehouse in Dallas.
The new facility will take up approximately 55 acres, and the retailer submitted its request to the Dallas City Council for $3.7 million in 10-year and five-year property and business personal property tax abatements, and $2 million from 2012 bond money designated for economic development in southern Dallas, for a total of $5.7 million, according to Dallas News.
"While we are still working through the approval process, we are excited about transforming the grocery retail landscape in the North Texas region," Kroger said in a statement.
The news source reports that the Dallas City Council voted unanimously to approve the $5.7 million request, estimating that the city will recoup most of the investment through sales taxes within the next five years.
The new facility is part of Kroger's larger expansion strategy to build 20 Ocado-powered distribution centers across the country—each one set to cost approximately $55 million.
Where will Kroger set its sights for its next facility? AndNowUKnow will keep you posted.