Simpson County, Kentucky, December 13, 2025
Kroger has announced a $391 million investment to build a new distribution center in Simpson County, Kentucky. This project is expected to create approximately 430 new full-time jobs, contributing significantly to the local economy. The facility will operate with automated systems aimed at efficiently supplying regional stores. With ongoing expansions in Kentucky, Kroger’s decision reinforces its commitment to economic growth in the state.
Kroger to Invest $391 Million in New Distribution Center in Simpson County
Kroger’s significant investment will create 430 jobs, aiding Kentucky’s economic growth.
Franklin, Kentucky – Kroger, the nation’s largest traditional grocer, recently announced plans to establish a new $391 million distribution center in Simpson County, Kentucky. This substantial investment is projected to create approximately 430 new full-time jobs for Kentuckians, showcasing the company’s ongoing commitment to the local economy.
The new facility will function as a full-line distribution center featuring scalable and automated operations, designed to efficiently supply the region’s stores. This investment follows Kroger’s recent $204 million expansion in Bowling Green, where Country Oven, a bakery owned by Kroger, has reinvested in Kentucky operations, further solidifying the company’s presence in the state.
Kroger’s Impact on Kentucky’s Economy
Kroger, founded in 1883 and headquartered in Cincinnati, Ohio, operates more than 2,700 stores across 35 states, including nearly 110 stores in Kentucky. With an employment roster of over 19,000 associates in the state, Kroger is a significant contributor to the local economy, operating four manufacturing and distribution facilities, as well as a regional headquarters in Louisville.
Governor Andy Beshear has emphasized that Kroger’s commitment to Kentucky is invaluable, stating the importance of the new jobs and investment in bolstering the local economy. Local officials echo this sentiment, with Simpson County Judge/Executive Mason Barnes commenting on the positive impact of having a corporate partner like Kroger in the community. He noted the benefits derived from job creation and investment, strengthening the economic landscape of the region.
Community Responses
The announcement has been welcomed enthusiastically by local leaders. Franklin Mayor Larry Dixon highlighted the project’s substantial investment and job creation, framing it as a significant boost to the local economy. Jim DeCesare, executive director of the Franklin-Simpson Industrial Authority, expressed excitement regarding the distribution facility’s establishment. He views this development as a commitment to the workforce and a catalyst for innovation and growth in the industrial sector.
Incentives Supporting Kroger’s Investment
The Kentucky Economic Development Finance Authority (KEDFA) has preliminarily approved a 15-year incentive agreement with Kroger under the Kentucky Business Investment program, which can provide up to $12 million in tax incentives based on the company’s investment and job creation targets. Furthermore, Kroger is eligible for up to $1 million in tax incentives through the Kentucky Enterprise Initiative Act (KEIA), which allows approved companies to recoup taxes on construction costs, building fixtures, and equipment used in research and development.
This performance-based agreement allows Kroger to keep a portion of the new tax revenue it generates by meeting its annual targets. The company can also access various resources from Kentucky’s workforce service providers, including no-cost recruitment and job placement services, reduced-cost customized training, and job-training incentives.
Sector Growth and Future Prospects
This investment highlights the ongoing expansion in Kentucky’s distribution and logistics sector, which is becoming increasingly vital to the state’s economic development and job creation strategies. Kroger’s strategic positioning in the state serves as a testament to the benefits of fostering a business-friendly environment that encourages private investment and entrepreneurial innovation.
Conclusion
Kroger’s new $391 million distribution center in Simpson County is a hopeful sign of economic resilience and growth for Kentucky. As the state continues to attract investments from significant players like Kroger, it creates opportunities for thousands of Kentuckians. Supporting local businesses and engaging with the community can lay a solid foundation for ongoing economic prosperity across the region.
Frequently Asked Questions (FAQ)
What is the location of Kroger’s new distribution center?
The new distribution center will be located in Simpson County, Kentucky, near the Kentucky/Tennessee state line.
How much is Kroger investing in the new facility?
Kroger is investing $391 million in the new distribution center.
How many jobs will the new distribution center create?
The facility is expected to create approximately 430 new full-time jobs for Kentuckians.
What type of operations will the new distribution center feature?
The center will serve as a full-line distribution facility, featuring scalable and automated operations designed to supply the region efficiently.
What incentives has Kroger received for this investment?
The Kentucky Economic Development Finance Authority (KEDFA) has preliminarily approved a 15-year incentive agreement with Kroger under the Kentucky Business Investment program, which can provide up to $12 million in tax incentives. Additionally, KEDFA approved Kroger for up to $1 million in tax incentives through the Kentucky Enterprise Initiative Act (KEIA).
Key Features of Kroger’s New Distribution Center
| Feature | Details |
|---|---|
| Location | Simpson County, Kentucky, near the Kentucky/Tennessee state line |
| Investment | $391 million |
| Job Creation | Approximately 430 new full-time jobs |
| Operations | Full-line distribution center with scalable and automated operations |
| Incentives | Up to $12 million in tax incentives under the Kentucky Business Investment program; up to $1 million in tax incentives through the Kentucky Enterprise Initiative Act (KEIA) |
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