Cincinnati, OH (WOWO) Kroger is closing three automated fulfillment centers in an effort to make its grocery delivery operations faster and more profitable.

The closures, effective in January, will affect facilities in Pleasant Prairie, Wisconsin; Frederick, Maryland; and Groveland, Florida. Kroger says it will continue to monitor performance at its five remaining automated centers according to WBNS 10-TV.

“We are taking decisive action to make shopping easier, offer faster delivery times, provide more options to our customers, and we expect to deliver profitable sales growth as a result,” said Kroger Chairman and CEO Ron Sargent.

The automated warehouses were developed through a partnership with British grocery technology company Ocado Group, which began in 2018. Kroger and Ocado initially planned 20 locations, but only eight have been built. Robots at these facilities pick and pack grocery orders for home delivery.

Kroger expects a $2.6 billion charge in its fiscal third quarter tied to the closures, but projects that the move will increase e-commerce operating profit by $400 million in 2026.

The announcement hit Ocado shares hard, falling 16% on the London Stock Exchange, while Kroger shares rose 1% on the New York Stock Exchange.