Kroger Names Site of its First Fulfillment Center of the Future
The Kroger Co. and Ocado have 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.
Hear From Kroger and Ocado
To hear more about how Kroger and other leading retailers are building the supply chain of the future be sure to check out the “A Long View on Logistics and the Future of Fulfillment” session at the NRF Big Show 2019.
The panel discussion will feature Brett Bonner, VP, R&D, Kroger; David Hardiman-Evans, SVP, NA, Ocado Group; and Bala Ganesh, VP, corporate engineering, UPS.
The panel will explore how the race to meet consumers' growing demand for faster delivery is prompting retailers to explore new models and technologies and where the opportunities lie.
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."