Ocado Group Powers New Kroger Fulfillment Centers
October 14, 2021
Kroger will offer more customers Kroger Delivery through the addition of
new Kroger fulfillment centers powered by the Ocado Group, combining
vertical integration, machine learning, and robotics to provide an
affordable, friendly, and fast fresh food delivery service.
"Kroger Delivery is a thriving part of our dynamic ecosystem and is
transforming grocery e-commerce and meeting a range of customer needs
through the introduction of first-of-its-kind technology in the U.S.
developed by Ocado," said Rodney McMullen, Kroger's chairman and CEO.
"Kroger's growing seamless ecosystem continues to scale, and we're
committed to doubling both our digital sales and profitability rate by
the end of 2023 and Kroger Delivery will help us reach this target.
"We feel great about the momentum we're experiencing with Kroger
Delivery and our partnership with Ocado and are strategically leveraging
our assets to expand our operations in existing regions as well as enter
new geographies on the East Coast that leverage facilities across a
growing range of sizes," continued McMullen.
The organization will share more insights about its plans for the
Northeast, California, and Florida, including customer coverage areas,
job creation, facility sizes and timing, in the coming months but today
is highlighting the following.
Kroger will enter the Northeast for the first time, offering Kroger
Delivery enabled by a customer fulfillment center (CFC). The facility
will meet the need for same-day and next-day grocery delivery demand.
Kroger will expand its existing operations and boost capacity in
California with the addition of two CFCs. The medium and smaller-sized
facilities will meet the need for same-day and next-day grocery delivery
Kroger Delivery launched in Central Florida earlier this year, and the
operation has ramped up faster than expected, unlocking additional ways
of executing and operating and resulting in high customer repeat rates
and net promoter scores.
To continue driving momentum, Kroger will enter South Florida and
introduce two smaller-sized fulfillment facilities. These will join the
already live CFC in Groveland as well as "spoke" sites in Jacksonville
and Tampa. It will also mark the introduction of two automated local
fulfillment centers with Ocado, enabling Kroger Delivery to serve
customers as fast as 30 minutes with a selection of 10,000 fresh food
items and essentials, and to deliver same-day and next-day orders with
"The acceleration of Kroger Delivery continues with these new facilities
and our continued focus on creating career opportunities and serving
customers through interconnected, automated and innovative fulfillment
models that cater to different and accretive grocery shopper missions in
both new and existing geographies," said Gabriel Arreaga, Kroger's
senior vice president and chief supply chain officer. "We have a
pipeline of sites in development across the U.S., with several scheduled
to open next year, and we're excited to continue delivering the Kroger
experience to more doorsteps."
"I am delighted that we're bringing Ocado's world-leading technology to
Kroger customers across the U.S.," said Luke Jensen, CEO of Ocado
Solutions. "The Northeast is another new geography for Kroger, and we're
excited to enter it with them. Moreover, with the addition of
fulfillment centers in Southern California, our partnership is truly
revolutionizing the U.S. grocery online landscape from coast to coast.
is also leveraging the full breadth of Ocado's fulfillment capabilities
to meet the growing range of customer wants and demands. Alongside the
current rollout of our automated facilities and software to optimize
fulfillment in stores for curbside pickup, today's announcement of a
further CFC in Florida and the introduction of our first 'Zoom' micro
fulfillment site in the U.S., serving the immediacy market, is a
testament to the breadth and flexibility of the offering we are helping
to bring to Kroger shoppers. These fulfillment centers will also benefit
from significant upstream efficiencies, with the existing CFC in
Groveland able to act as a major supply hub into the new Florida sites."
Kroger Delivery currently operates CFCs in Groveland, FL and Monroe, OH
and in addition to the newly announced five facilities, Kroger Delivery
is slated to open previously announced sites in Dallas, TX; Forest Park,
GA (Atlanta); Frederick, MD; Phoenix, AZ; Pleasant Prairie, WI; Romulus,
MI (Detroit); and sites in the South, West and Pacific Northwest. As the
Kroger Delivery network expands, Kroger will announce new facilities and