Kroger’s unexpected announcement that it will cease operations at its Groveland facility has cast a somber shadow over the community, leaving more than 1,000 employees facing uncertainty just weeks before the holidays. The timing of the shutdown has been especially difficult for families across Lake County who are now left grappling with the news. In response to the closure, Lake County Commissioner Sean Parks has issued the following statement addressing the impact and outlining the county’s efforts to support affected workers.
A message from Sean Parks, Lake County Commissioner
Like many of you, I’m disappointed and frustrated by yesterday’s turn of events. I am heartbroken that Kroger/Ocado is ceasing operations at their Groveland facility. My deepest sympathies go out to the 1,200 or so employees and their families who learned this news just weeks before the holidays.
These are our neighbors, friends, and community members, and they deserve our full support and prayers as they navigate this difficult transition.
Since the moment we received the news yesterday morning, the Lake County Office of Economic Development and LEAD have been treating this event with the urgency and seriousness of a natural disaster. We have been working feverishly to mobilize resources, meet with impacted individuals, and implement job placement and retraining efforts. Our top priority is helping affected workers transition smoothly into new careers. Huge thanks to CareerSource Central Florida, who helps with job matching and workforce training solutions.
There are questions being asked, and understandably so.
Let me address one of the biggest – Economic incentives. Lake County’s economic development incentives are not giveaways—they are performance-based contracts with a 10-year term.
Here’s how they work. Kroger/Ocado paid their full property and tangible taxes each year—just like any other business in Lake County. Only after they demonstrated that they had met the required job creation, wage, and capital investment thresholds for that year did they become eligible to receive a grant. These grants function as partial reimbursements and are reviewed and awarded on a year-by-year basis, based strictly on performance.
Unlike, say, a college football coach who gets paid regardless of wins or losses, Kroger/Ocado had to meet strict yearly job creation and wage standards to receive a grant. And they did. For three consecutive years, they hired and retained hundreds of full-time employees at or above 115% of Lake County’s average wage. In doing so, they earned approximately $1.3 million in performance grants.
Because this was a 10-year agreement based on annual job performance, and they are exiting early, we will obviously not be issuing any future payments under the contract. Not a single dollar was paid without them first hitting clear job and wage goals.
We built in legal protections and are already taking steps to recover funds tied to their exit. That said, I view the company’s sudden exit as a breach of contract. I support exploring avenues to recoup past payments, and we will do so responsibly and with accountability in mind.
Some have asked if the incentives were a waste. Nationally renowned UCF Economist Dr. Sean Snaith has said that “incentives, when tied to performance and accountability, are not corporate giveaways, but rather tools for leveling the playing field.” Economic development is competitive, and without incentives, communities like ours would be left behind. Kroger/Ocado chose Lake County over other major regions and cities in the Southeast – the incentives helped close the deal.
Despite this setback, let me be clear, Lake County remains one of the best places in Florida to do business. Our strategic location, skilled workforce, business friendly environment, and unmatched quality of life—from our lakes and trails to our outdoor lifestyle—make this a community where both families and businesses thrive.
And it should be remembered that the high-tech, state-of-the-art facility in Groveland still stands. I wouldn’t be surprised if other advanced logistics or tech-driven companies are soon interested in filling that space. We’re ready to work with them.
I am an eternal optimist but I know it will take time for people to pick up the pieces and find a new career or new job.
We will support affected families. We will hold partners accountable. And we will continue building a resilient, dynamic Lake County economy.
“Greatness in a community isn’t defined by avoiding hardship, but by how we rise together through it. Lake County has done it before—and we’ll do it again.”
To learn more, visit KROGERANNOUNCEMENT
