Kroger Shutters Austin Delivery Facility

The company said it didn’t meet expectations. So Kroger will shut down its Austin delivery warehouse after only a year up and running.

The Cincinnati-based company operates from a leased 70,121-square-foot facility in Northeast Austin at 2401 Ferguson Lane. The company had a six-year lease at one of the three buildings at the Tuscany Logistics Center. It’s unclear what will happen to the facility. 52 employees will be laid off. The Austin Business Journal reports Kroger attempted to break into the Austin market by offering a cheaper option than Whole Foods Market or Central Market, two mainstays in the city.

The company had 40 vans in its local delivery fleet that could carry about 20 orders per van in its climate-controlled space. It traversed 90 zip-codes.

The grocery delivery market in the U.S. is expecting a growth rate of 12%, reaching a market volume of nearly $456 billion by 2029.