GROVELAND, Fla., July 24, 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 second customer
fulfillment center (CFC), located in Groveland, FL – a new market for the
retailer.
"Kroger is excited to enter Florida to redefine the customer experience
through our industry-leading partnership with Ocado," said
Rodney McMullen, Kroger's chairman
and CEO. "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."
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 is now being replicated in Groveland and will continue in cities across
the United States to serve
customers. Kroger intends to open 20 CFCs as it transforms to
become an omnichannel retailer. Two additional sites have been
named in Forest Park, GA and
the Mid-Atlantic region.
Kroger is investing $55 million to
build the CFC in Groveland, which
will measure up to 375,000 square feet and is expected to generate
up to 400 new jobs.
"This is another significant milestone for Kroger and Ocado, and
a big step toward a nationwide revolution in how Kroger customers
experience grocery ecommerce," said Tim
Steiner, CEO of Ocado Group. "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."
"The City of Groveland is
thrilled to partner with Kroger and Ocado," said Groveland Mayor Evelyn
Wilson. "We share their values of customer service,
commitment to excellence and demonstrated concern for people and
the environment, all fitting perfectly with Groveland and our shared future."
"We are excited about the opportunities Kroger's
state-of-the-art customer fulfillment center will bring to
Lake County," said Tracy Garcia, director, Elevate Lake Economic
Development. "The jobs being created are an important factor, as it
adds more vibrancy to our community. This will enable many of the
62,000 residents that travel elsewhere for work to stay closer to
home for quality employment; trading precious commute time for
quality personal time."
"We are excited to partner with Kroger on the construction of
its second shed," said Todd Schell,
Senior Vice President of Industrial for Ryan Companies. "The
opportunity to design and build such an innovative project is
important to us, and we are honored to be a small part of the
growth that is accelerating the grocery industry as a result of
these types of projects."
"Kroger is especially grateful to the State of Florida, Groveland and Lake
County for working with us to introduce Kroger to
Central Florida residents,"
continued McMullen. "We look forward to recruiting talent and
transforming the ecommerce, fulfillment and logistics landscape to
bring Florida customers fresher
food faster than ever before."
In May 2018, Kroger and Ocado
announced their alliance to bring Ocado's innovation and
technologies to the U.S.
The new CFC will be located at 7925 American Way in Groveland and is expected to become
operational in 2021.
During today's groundbreaking ceremony, Kroger presented
$10,000 to the Faith Neighborhood
Center Food Bank, a South Lake County hunger-relief agency, to
support Zero Hunger | Zero Waste, the company's bold social impact
plan to end hunger in its communities and eliminate waste across
the company by 2025. Kroger's Zero Hunger | Zero Waste donation
will be used to establish a food market inside Windy Hill Middle School, enabling it to have a
fully-stocked pantry for students who need food assistance during
the upcoming school year.
The donation also demonstrates Kroger and Ocado's shared social
impact efforts, as Ocado announced in March
2018 that it operated nearly zero waste facilities in
the United Kingdom.
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 over 11 million
customers daily through a seamless digital shopping experience and
2,761 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.