Kroger Expands Fulfillment Network in Home State

Cincinnati-based The Kroger Co., announced March 2 the addition of a new customer fulfillment center (CFC) in northeast Ohio. The high-tech CFC, measuring 270,000 square feet, will be located in the Cleveland region, and is expected to become operational within 24 months after the site breaks ground.

"Kroger is incredibly excited to expand our delivery business in our home state and provide northeast Ohioans access to thousands of fresh and popular products, including our industry-leading Private Selection and Simple Truth brands, through our customer fulfillment center," said Gabriel Arreaga, SVP and chief supply chain officer of Kroger, in a statement. "The Cleveland region facility is an accelerant to our strategy to achieve the doubling of our digital sales and profitability rate by the end of 2023, and we're eager to provide a rewarding experience for our new customers in northeastern Ohio and Pennsylvania and create new jobs for individuals passionate about technology, engineering, operations, logistics and transportation, inventory and quality management, and customer service and engagement."

Powered by the Ocado Group, a U.K. based technology company that provides end-to-end online grocery fulfillment solutions, the location will employ up to 400 new jobs.

"We are excited to bring Kroger and Ocado's second automated warehouse to Ohio. As this site develops and goes live, it will be instrumental in delivering fantastic grocery experiences and exciting job opportunities to households across Cleveland, Pennsylvania and beyond," said Luke Jensen, CEO of Ocado Solutions, in a statement.

Business development companies JobsOhio and Team NEO will partner with the grocery retailer to deliver this project.

"Kroger Fulfillment Network's decision to create a new state-of-the-art facility in northeast Ohio demonstrates that the region has favorable logistics and talent to connect technology with retail," Team NEO CEO Bill Koehler said in a statement. "Along with our local partners, ODOD and JobsOhio, we look forward to continuing to work with the company's leadership to ensure their sustained success in northeastern Ohio."

In December 2021, Kroger announced the addition of a CFC in Indiana. Kroger said its Dallas fulfillment center is slated to open this spring.