Kroger ushers in Ocado-automated warehouse for Denver market

The Kroger Co. has officially opened an Ocado-powered automated customer fulfillment center (CFC) in Aurora, Colorado, to serve the Denver metropolitan area.

Located at 6125 N. Jackson Gap Way in Aurora, the 300,000 square-foot CFC will fill online grocery orders and provide Kroger Delivery service to customers up to 90 minutes away, Kroger said Tuesday. The Cincinnati-based supermarket giant had unveiled plans for the CFC last June and, at the start of February, reported that the facility became operational in announcing the launch of an Ocado-driven spoke site in Florida.

“Kroger Delivery, proudly serving [Kroger Co. supermarkets] King Soopers and City Market, will connect more Coloradans to a convenient shopping experience,” Rebekah Manis, senior director of Kroger Delivery fulfillment centers, said in a statement. “Delivery customers can save with personalized digital coupons and fuel points on the products their families need, want and love. Kroger Delivery means more customers can enjoy high-quality, affordable groceries ordered through an easy-to-use online experience.”

On Tuesday, Kroger also indicated that a planned CFC for Frederick, Maryland, has gone into operation. The 350,000-square-foot facility, situated at 7106 Geoffrey Way in Frederick, processes online grocery orders for shoppers in Maryland, Pennsylvania and the District of Columbia. In February 2019, Kroger had announced plans to build a robotics-driven Ocado CFC in the Mid-Atlantic region but hadn’t specified a location. The company named Frederick as the CFC site in January 2020.

Thus far, Kroger has announced 17 Ocado CFCs—ranging from 135,000- to 375,000-square-feet—and eight are now open. Before the Aurora and Frederick facilities, the retailer most recently opened CFCs of 135,000 square feet and 350,000 square feet in Romulus, Michigan, and Dallas, respectively.

Kroger opened its first CFC, a 375,000-square-foot automated warehouse, in April 2021 in Monroe, Ohio. That was followed by 375,000-square-foot CFCs in Groveland, Florida, in June 2021 and in Forest Park, Georgia, in February 2022 plus a 340,000-square-foot CFC in Pleasant Prairie, Wisconsin, this past June.

Upcoming CFCs, as previously reported by Kroger, include locations in Phoenix; Charlotte, North Carolina; the Cleveland region; the Pacific Northwest; and the Northeast. The retailer, too, has announced plans for two CFCs in Southern California and two more in Florida.

In May 2018, Kroger unveiled an exclusive U.S. partnership with U.K.-based online grocery specialist Ocado Group to identify sites for about 20 automated CFCs over the ensuing three years. The high-tech CFCs use Ocado’s vertical integration, machine learning and robotics to fill e-grocery delivery orders and extend Kroger’s reach to a larger geographic footprint, including areas where it doesn’t operate physical stores.

“We're proud to bring Ocado’s technology to Aurora and to help launch a service that will power world-class customer experiences for Kroger Delivery shoppers in the Denver metro area,” stated Mark Bentley, Americas president for Ocado Solutions, which has its U.S. headquarters in Tyson, Virginia. “We are now live with eight CFCs around the U.S. supporting Kroger Delivery to reach customers across 14 states. As we continue to expand this network nationwide, we’re introducing a step change in online grocery experience for Kroger shoppers, powered by some of the most sophisticated technology applied to any sector of the global economy.”