CINCINNATI, June 12, 2019 /PRNewswire/ -- The Kroger Co.
(NYSE: KR), America's largest grocery retailer, and Ocado (LSE:
OCDO), one of the world's largest dedicated online grocery
retailers, today broke ground on America's first customer
fulfillment center (CFC).
"Kroger is incredibly excited to reach this meaningful milestone
in our Restock Kroger vision to serve America through
food inspiration and uplift," said Rodney
McMullen, Kroger's chairman and CEO. "Our partnership with
Ocado will introduce transformative ecommerce, fulfillment and
logistics technology in the U.S. and bring customers fresher food
faster than ever before, accelerating our ability to provide
anything, anytime, anywhere."
Kroger's first CFC – an automated warehouse facility with
digital and robotic capabilities, also known as a shed – is being
constructed in Monroe, OH. The CFC
model will be replicated to serve customers across America. Kroger
intends to open 20 CFCs to support its vision to create a seamless
customer experience. Two additional sites have been selected in the
Central Florida and
Mid-Atlantic regions.
Kroger is investing $55 million to
build its first shed, which will measure 335,000 square feet and is
expected to generate more than 400 new jobs.
"This is a historic moment for our partnership. With
construction starting for Kroger's first customer fulfillment
center in the Cincinnati region,
we are now well on the way to a nationwide revolution in how Kroger
customers experience ecommerce," said Luke
Jensen, CEO of Ocado Solutions. "In a fast-developing
landscape for grocery retail, Kroger's determination to continue
delivering the best experience for its customers, online as in
stores, is unparalleled. I am excited that we will shortly bring
the world-class innovation of the Ocado Smart Platform to their
operations, as well as create exciting opportunities for engineers
and technologists across the country to work with Ocado's cutting
edge robotics and automation."
"Ohio is a premier destination
for businesses to grow, and I welcome Kroger and Ocado's decision
to choose the Cincinnati region
for this exciting project," said Ohio Governor Mike
DeWine. "This is a state-of-the-art facility that represents
the intersection of Ohio's budding
tech and food sectors and the next step in advancing Kroger
customers' shopping experiences."
"The Kroger-Ocado partnership brings advanced technology to
Monroe along with the Kroger
grocery name that our residents recognize," said William Brock, Monroe City Manager. "This
facility reinforces that Monroe
can provide workforce solutions to meet the needs of an innovative
company, and we appreciate the investment in our community."
"Kroger has selected Ryan Companies US, Inc. to design and build
the shed, with the design of the Ohio facility serving as a model for future
projects," said Todd Schell, Senior
Vice President of Industrial for Ryan Companies. "We are excited
that Ryan will partner with Kroger to design and build this
innovative and complex facility to support the company's
accelerated growth in grocery ecommerce."
"Kroger is proud to choose our home state of Ohio as the location for the first-of-its-kind
customer fulfillment center in America," continued McMullen. "We
thank Governor Mike DeWine,
JobsOhio, REDI and the Monroe City Council for supporting this
project. Kroger is committed to helping position Ohio, Cincinnati and our region as landmarks for
innovation, further advancing the area's digital and technology
ecosystem."
In May 2018, Kroger and Ocado
announced their alliance to bring Ocado's innovation and
technologies to the U.S.
To view video and photography of a CFC, visit here.
About Kroger
At The Kroger Co. (NYSE: KR), we are
dedicated to our Purpose: to Feed the Human Spirit™. We are
nearly half a million associates who serve nine million customers
daily through a seamless digital shopping experience and 2,800
retail food stores under a variety of banner names, serving America
through food inspiration and uplift, and creating
#ZeroHungerZeroWaste communities by 2025. To learn more about us,
visit our newsroom and investor relations site.
About Ocado Solutions
Ocado Solutions is responsible
for corporate partnerships, providing the Ocado Smart Platform
(OSP) as a service to retailers around the world. OSP comprises
access to Ocado's physical infrastructure solutions, running highly
efficient warehouse operations for the single pick of products,
together with the entire end-to-end proprietary software
applications required to operate a world class online grocery
business. It is underpinned by Ocado's proven expertise and
experience as a dedicated online grocer in the UK.
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SOURCE The Kroger Co.