CINCINNATI, Nov. 19, 2018 /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 announced the Cincinnati region as its selection for
America's first customer fulfillment center (CFC).
"Kroger is joining with the best partners in the world to
co-innovate and leverage technology to redefine the customer
experience," said Rodney McMullen,
Kroger's chairman and CEO. "We are incredibly excited to partner
with Ocado to transform the industry and deliver on our Restock
Kroger vision to serve America through food inspiration and
uplift. This Kroger shed, powered by Ocado, will accelerate our
ability to provide customers with anything, anytime and
anywhere."
Kroger's first CFC – an automated warehouse facility with
digital and robotic capabilities, also known as a "shed" – will be
constructed in Monroe, OH, a
suburb north of Cincinnati,
subject to securing state and local incentives. The CFC model will
be replicated to serve customers across America. Kroger is planning
to open 20 CFCs to support its seamless vision. The CFC will
introduce innovative robotics technology, allowing for
next-generation automated storage and retrieval.
Kroger is investing $55 million to
build the first shed, which will measure 335,000 square feet and is
expected to generate more than 410 new jobs.
"We and our partners at REDI Cincinnati are excited Kroger has
chosen Ohio for its first customer
fulfilment center in the United
States," said Dana Saucier,
JobsOhio vice president and head of economic development. "This
cutting-edge facility will bring 410 jobs to Cincinnati and serve as a national model as
Kroger continues its focus on the evolving preferences of its
customers throughout the country."
"With its latest investment in the region, Kroger continues to
be both an innovative leader in consumer goods and an essential
part of Greater Cincinnati's
growth," said Kimm Lauterbach,
President and CEO of REDI Cincinnati. "REDI Cincinnati is excited
to support Kroger's growth in Monroe."
"Kroger is committed to helping position Cincinnati and Ohio as a destination for digital and
technology talent. We are proud to choose our HQ state of
Ohio as the first location for
this first-of-its-kind customer fulfillment center in the U.S.,"
said Mr. McMullen. "We thank Governor John
Kasich, JobsOhio, and REDI for enabling Kroger's
$55 million capital investment and
creation of 410 new Ohio
jobs."
Earlier this year, Kroger and Ocado announced an alliance to
bring to the U.S. Ocado's unparalleled innovation and technologies.
In October, the companies signed a master services agreement to
further solidify their partnership.
"Ocado is a UK-based company with global ties and advanced
digital and robotic capabilities. Working together, we will develop
the strongest possible supply network to support a seamless
customer experience that can serve every person in America," said
Alex Tosolini, Kroger's senior vice
president of new business development. "It's all about building a
seamless supply chain to provide our customers with an amazing
shopping experience."
"We are delighted to be supporting Kroger in its efforts to
transform the service and value it brings to U.S. customers," said
Luke Jensen, CEO of Ocado Solutions.
"Today's announcement of the first CFC is an important first step
to making that happen. It's all the more exciting that this CFC
will serve Kroger's hometown of Cincinnati."
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
Ocado is a UK based company admitted to
trading on the London Stock Exchange (Ticker OCDO). It comprises
one of the world's largest dedicated online grocery retailers,
operating its own grocery and general merchandise retail businesses
under Ocado.com and other specialist shop banners, together with
its Solutions division.
About Ocado Solutions
Ocado Solutions is responsible
for corporate partnering, which began with its agreement to operate
the online business of Wm Morrison Supermarkets plc in the UK, and
more recently with agreements with Groupe Casino, Sobeys and ICA
Group to develop their online businesses in France, Canada and Sweden respectively. The agreement with Kroger
to provide it with the OSP suite of products to massively expand
its online grocery business in the USA is Ocado Solutions' largest and most
recent partnership transaction.
OSP is an enabling platform provided as a service to retailers.
It comprises access to Ocado's physical infrastructure solutions to
run highly efficient warehouse operations for the single pick of
products, together with the entire end-to-end proprietary software
applications required to operate an online grocery business - from
user interfaces, through warehouse operating and control systems,
to logistics, route planning and optimization. It is underpinned by
Ocado's expertise and experience as a dedicated online grocery
operator in the UK.
OSP provides multiple advantages to retailers wishing to operate
online including:
- enables retailers to own, control and operate their own online
businesses
- based on proven systems and infrastructure which Ocado uses in
its own retail business
- both modular (size flexible) and scalable (can start smaller
and scale up on short lead times), and supports a large range
- significant operational cost benefits
- entire seamless proprietary software provision updated
alongside Ocado's own development program, providing "best in
class" service for customers
- flexible agreement terms with low entry cost and ongoing fees
linked to installed capacity
- Ocado does not compete with grocery retailers outside of the
UK
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SOURCE The Kroger Co.