Kroger, Ocado Announce Two New Customer Fulfillment Centers

Kroger and Ocado, one of the world’s largest online grocery retailers, have announced that Central Florida and the Mid-Atlantic will be the next regions for Kroger’s two newest customer fulfillment centers (CFC) in the U.S.

“Kroger is excited to partner with Ocado — one of the most innovative, advanced companies in the world — to redefine the grocery shopping experience for customers along the East Coast,” Kroger Chairman and CEO Rodney McMullen said in a press release. “We are incredibly excited to introduce customer fulfillment centers in this region to deliver on our Restock Kroger vision to serve America through food inspiration and uplift.”

“Kroger is developing the retail model of the future through our exciting partnership with Ocado, a UK-based company with global ties,” added Alex Tosolini, Kroger’s senior vice president of new business development. “We will co-innovate with Ocado to develop the best possible experiences for our customers, leveraging advanced robotics technology and creative solutions.”

Kroger has committed to building 20 high-tech CFCs, automated warehouse facilities with digital and robotic capabilities. In November, Kroger announced its first CFC would be built in Monroe, Ohio, which is outside of Cincinnati. Kroger is investing $55 million to build the 335,000-square-foot location, which is called a “shed.” The retailer noted that the facility could bring in over 410 new jobs.

“This announcement marks another important step toward combining Kroger’s long-standing dedication to innovative and world-class grocery services with Ocado’s unique, industry-leading technology,” said Luke Jensen, CEO of Ocado Solutions. “As the U.S. retail landscape continues to change, these CFCs will play a crucial role in helping Kroger offer its customers a superior online shopping experience in these two major markets.”

Ocado entered into a deal with Kroger last year to become the retailer’s exclusive partner in the U.S., which would make its home delivery platform available in the country.