Kroger, Ocado break ground on new customer fulfilment centre in US

WCN Editorial Team 26 Jul 2019 NORTH AMERICA BUILDINGS

US grocery retailer Kroger and online retailer Ocado have broken ground on new customer fulfilment centre (CFC) in Groveland, Florida.

Kroger is investing $55m (£44m) to build the fulfilment centre, which will have an area of 375,000ft². To be located at 7925 American Way, the new CFC will be operational in 2021 and is expected to create up to 400 new jobs.

According to Kroger, the new CFC will be an automated warehouse facility with digital and robotic capabilities. It is the second CFC for the company in the US and will include features from the first CFC being constructed in Monroe, Ohio.

The grocery retailer intends to open 20 CFCs as part of its transformation to become an omnichannel retailer. Two additional sites have been named in Forest Park, GA and the Mid-Atlantic region.

In May 2018, Kroger and Ocado formed an alliance to bring Ocado’s Smart Platform technology, which includes online ordering, automated fulfilment and home delivery capabilities, to the US.

Kroger chairman and CEO Rodney McMullen said: “Kroger is excited to enter Florida to redefine the customer experience through our industry-leading partnership with Ocado.

“There’s a substantial demand for Kroger products and services in the state, and we’re eager to offer a new and seamless experience through the customer fulfillment center, leveraging advanced robotics technology and creative solutions to provide customers with anything, anytime, anywhere.”

Ocado Group CEO Tim Steiner said: “This is another significant milestone for Kroger and Ocado, and a big step toward a nationwide revolution in how Kroger customers experience grocery ecommerce.

“As they enter Florida for the first time, Kroger is breaking ground in more ways than one, and I am delighted to bring Ocado’s world-class technology to its operations in such an important market.

“Our partnership is also creating exciting opportunities for technologists and engineers to work with Ocado’s cutting-edge robotics and automation. As this site develops, we look forward to welcoming new talent to our skilled, dedicated and growing teams across the United States.”

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Image: Kroger and Ocado officials at the groundbreaking ceremony. Photo: Courtesy of The Kroger Co.

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