FRANKFORT – On Tuesday, Gov. Andy Beshear highlighted the continued momentum of the state’s logistics and distribution sector as Kroger Fulfillment Network will locate a new distribution center in Boone County, investing over $550,000 and creating 98 full-time, Kentucky jobs.
“Kentucky’s unique location and access to resources make our distribution and logistics sector one of the strongest in the country,” said Gov. Beshear. “We are continuing to see announcements in this sector that are bringing incredible opportunities and jobs to our communities across the state. I want to thank Kroger and their leadership for expanding their operations in Kentucky yet again and continuing to believe in what this state has to offer.”
The new spoke facility will help expand Kroger’s e-commerce reach in Kentucky. This new facility will also support the customer fulfillment center currently operating in Monroe, Ohio, by extending customers’ access to affordable, healthy and fresh foods. To support the operation, the company will locate the facility in a 2,000-square-foot portion of an existing building in Boone County and will create 98 quality jobs for Kentucky residents.
“We are thrilled to have our Northern Kentucky spoke facility considered for the Kentucky Business Investment program (KBI) and extend our deepest gratitude to the KEDFA staff for their support. The KBI underscores Kentucky’s pro-business climate and will allow for workforce growth and development in the Northern Kentucky area,” said Ben Hamilton, vice president of Logistics and Network Strategy, Kroger Delivery. “We are passionate about delivering a fresh, convenient customer shopping experience. This expansion will mean lower prices and more choices for more people across Kentucky. Just like their in-store experience, customers will have access to personalized digital coupons, valuable fuel points, and the fresh, high-quality products they need, want and love.”
Kroger maintains 112 stores in Kentucky, employing more than 19,000 associates. The commonwealth is also home to four manufacturing and distribution facilities that service the company, as well as a regional headquarters in Louisville. Since 1987, Kroger’s floral designers have created the famous Kentucky Derby Garland of Roses. In 2017, Kroger and the University of Kentucky entered a 12-year marketing agreement that renamed the university’s football stadium to Kroger Field.
This expansion adds to Kentucky’s thriving distribution and logistics sector, which includes more than 600 facilities and employs over 91,000 people statewide. Administration-to-date, more than 120 new-location and expansion projects within the industry are expected to create more than 8,000 full-time jobs with over $2.2 billion in new investments.
Kroger’s investment and planned job creation furthers recent economic momentum in the commonwealth, as the state builds back stronger from the effects of the pandemic.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) last Thursday preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $550,000 in tax incentives based on the company’s investment of $554,000 and annual targets of:
- Creation and maintenance of 98 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $24.28 including benefits across those jobs.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, Kroger can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
