Kroger Opens New Facility to Expand Louisville Delivery

Cincinnati-based Kroger Co. said Tuesday it opened a new fulfillment center in Louisville to expand delivery operations there.

The 50,000-square-foot “spoke” facility will work with Kroger’s customer fulfillment center in Monroe, Ohio, about 130 miles away, to serve as a last-mile warehouse for delivery orders.

“Kroger delivery is part of our rapidly expanding seamless ecosystem that provides customers with fresh and quality products—anytime and anywhere,” Kroger VP and Head of E-Commerce Bill Bennett said in a statement. “Customers will enjoy receiving their orders directly from our refrigerated trucks and delivered by trained Kroger uniformed associates.”

The Louisville spoke facility will employ up to 161 full-time workers, the company said. It will use recyclable bags and is working to partner with local food banks for donations.

Kroger is investing heavily in its delivery ecosystem.

Last week, the grocery giant opened a 350,000-square-foot, robot-powered fulfillment center in Dallas, one of six such facilities around the country. Kroger has more than a half dozen of the centers planned for other cities.

In 2018, Kroger joined forces with U.K.-based grocery e-commerce firm Ocado to create a delivery network. At Kroger’s fulfillment centers, more than 1,000 bots travel around large 3D grids, selecting products for orders.

In addition to Monroe, Ohio, and Dallas, Kroger has fulfillment centers in Groveland, Fla.; Forest Park, Ga.; Pleasant Prairie, Wis.; and Romulus, Mich.

In June, Kroger reported its digital sales had fallen 6% as shoppers returned to stores following the pandemic. But the retail giant said it expected that decrease and that it was working to grow its personalized marketing offerings, loyalty club, fulfillment centers and delivery program.