Kroger Starts Florida Grocery Delivery
November 4, 2021
Kroger opened of the
Customer Fulfillment Center (CFC) in Groveland, FL powered by Ocado, a leader in technology for grocery e-commerce.
This marks Kroger's entry into the Florida market with an e-commerce
delivery service that combines vertical integration, machine learning,
and robotics with affordable, friendly, and fast delivery of grocery
items and fresh food.
Kroger Delivery Arrives in Florida
"The Kroger Delivery network combines the efficiency of technology with
the experience of our associates to deliver fresh, affordable food, and
a consistent and rewarding customer experience," said Gabriel Arreaga,
Kroger's chief supply chain officer. "We're proud to launch Kroger
Delivery in Florida, a new geography for Kroger and a milestone moment
in our history to further build on our success as one of America's
leading retailers and e-commerce companies."
"Groveland is excited to welcome Kroger to our family!" said Evelyn
Wilson, mayor of Groveland. "The combination of their contributions to
the community, coupled with their corporate culture and values, make
them an ideal partner with our charming city. I look forward to a long
and prosperous relationship."
"Kroger is uniquely positioned to transform grocery e-commerce in
Florida because of our differentiated offering that brings high-quality
fresh groceries directly to our customers' doorstep. The service
features fresh food, adult beverage, and personal care products,
affordable prices and promotions, and a best-in-class fuel rewards
loyalty program," said Bill Bennett, Kroger's vice president of
e-commerce. "This innovative, customer-centric offering is delivered by
our professionally trained and friendly Kroger Delivery associates,
providing our customers with anything, anytime, anywhere and broadening
our reach and products to new geographies."
"We are pleased Kroger selected the Tampa Bay and Hillsborough County
regions to expand the company's e-commerce reach in the State of
Florida," said Pat Kemp, chair of the Hillsborough County Board of
County Commissioners. "Kroger will be an integral part of our community
as they expand and grow here. We look forward to providing them the
partnership and supportive environment needed to develop a talented
workforce and successful business operations."
"Every citizen in Jacksonville should have access to affordable,
healthy, and fresh foods," said Lenny Curry, mayor of Jacksonville. "We
welcome Kroger into our community and are very encouraged that this
delivery service will fill an important gap for people who don't have
easy access to groceries."
Kroger Delivery Customer Experience
After placing an order via Kroger.com or the Kroger app, customers in
regions where a CFC is located have groceries delivered by a
knowledgeable Kroger Delivery associate in a temperature-controlled van.
The associate delivers industry-leading customer service, including
ensuring order freshness and satisfaction, managing order changes, and
informing customers of loyalty membership benefits like earned fuel
points through a partnership with Shell® and digital coupon savings.
As part of Kroger's commitment to provide a differentiated and
affordable grocery delivery experience for customers, Kroger Delivery
will offer variable delivery fees that do not require customers to
provide a tip and are influenced by a number of factors like a
customer's loyalty, delivery window popularity, route optimization, and
order lead time. Variable delivery fees will allow Kroger Delivery to
provide additional discounted options where it has the flexibility,
creating a personalized offering and delivering value to customers in
ways that matter.
Kroger Delivery Operations
In May 2018, Kroger and Ocado formed an exclusive partnership to
introduce to the U.S. for the first-time proprietary technology
solutions focused on artificial intelligence, advanced robotics and
automation, and creative solutions to create efficient fulfillment and
The Groveland CFC measures 375,000 square feet, carries thousands of
popular grocery products, and represents one of the models engineered
for the flexible Kroger Delivery network, which will also include
smaller automated facilities and spoke locations. The CFC can fulfill
thousands of orders per day. The Groveland CFC and spoke in Tampa are
now open, with the Jacksonville spoke scheduled to open this month. The
Groveland CFC joins the Monroe, OH CFC which opened earlier this spring.
Kroger Delivery is a vertically integrated network, enabling coverage of
up to 90 miles from the hub location in Groveland and significantly more
territory when spoke locations, such as Tampa and Jacksonville, are
integrated. In these highly automated Customer Fulfillment Centers, more
than 1,000 bots whizz around giant 3D grids, orchestrated by proprietary
air-traffic control systems in the unlicensed spectrum. The grid, known
as The Hive, contains totes with products and ready-to-deliver customer
As customers' orders near their delivery times, the bots retrieve
products from The Hive which are presented at stations for items to be
sorted for delivery, a process governed by algorithms that ensures items
are intelligently sorted. For example, fragile items are placed on top,
bags are evenly weighted, and each order is optimized to fit into the
fewest number of bags, reducing plastic use.
Once completed, orders are loaded into a temperature-controlled Kroger
Delivery van, which can store up to 20 orders. Powerful machine learning
algorithms dynamically optimize delivery routes, considering factors
like road conditions and optimal fuel efficiency.
"We're proud to help bring Kroger to Florida with Ocado's
state-of-the-art technology," said Luke Jensen, CEO of Ocado Solutions.
"Kroger and Ocado's unique partnership is opening up new possibilities
online for U.S. grocery customers and we can't wait for households
across Florida to experience amazing levels of service and freshness
online with Kroger Delivery."
"We are excited to bring Kroger's exclusive brands, including Simple
Truth®, the country's largest natural and organic private label, and
Private Selection® to Florida," said Brandon McBurney, Kroger's general
manager of the Groveland Customer Fulfillment Center. "Kroger Delivery
provides reliably fresh food in a convenient, innovative way. Kroger
Delivery will introduce Kroger to new audiences, accelerate our
e-commerce capabilities, focus on outstanding customer experiences, and
create hundreds of new career opportunities."
Kroger Delivery Associate Experience
Talent on Kroger's supply chain, technology and digital, data and
analytics, human resources, operations, and merchandising teams are
partnering to design the Kroger Delivery network. At every CFC, on-site
associates support delivery operations and help process, package, and
load orders. The Groveland CFC employs nearly 400 associates, with roles
focusing on customer service and engagement, engineering, operations,
inventory and quality management, and transportation. The spoke
locations will each employ nearly 180 associates. Earlier this week, The
Kroger Family of Companies announced it is hiring for 10,000 open roles.