Sponsored By

Kroger, Ocado announce first U.S. fulfillment center

Automated warehouse facility to be first of online retail partnership

Michael Browne, Executive Editor

November 20, 2018

2 Min Read
ocado_shed.jpg
Robots collect and pack orders at an Ocado fulfillment center in the U.K.Ocado

The Kroger Co. and the U.K.-based Ocado Group, partners in a highly vaunted online grocery business, announced today that their first customer fulfillment center (CFC) will be located in Monroe, Ohio, just outside of Kroger’s headquarters city of Cincinnati.

The CFC, also known as a “shed,” will be an automated warehouse facility with digital and robotic capabilities. Based on Ocado’s existing sheds in the U.K., the CFC model will be replicated to serve customers across America. Under the terms of the deal, Kroger plans to order three CFCs by the end of 2018 and 20 CFCs during the first three years of the agreement.

Ocado has agreed to deploy and maintain modules of mechanical handling equipment to provide a certain level of throughput. The company said the goal is for Kroger's CFCs to be up and running within about two years of each order being placed.

"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." (The video below illustrates how robots operate at an existing Ocado shed.)

Kroger is investing  million to build the first shed, which will measure 335,000 square feet and is expected to generate more than 410 new jobs.

"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 McMullen. 

Earlier this year, Kroger and Ocado announced an alliance to bring to the U.S. Ocado's innovation and technologies. In October, the companies signed a master services agreement to further solidify their partnership.

About the Author

Michael Browne

Executive Editor, Supermarket News

Michael Browne joined Supermarket News in 2018 after serving in managing and executive editor capacities at leading B2B media brands including Convenience Store NewsLicense Global and Travel Agent. He also previously served as content production manager for print and digital in the Business Intelligence division of Informa, parent company of Supermarket News and Nation’s Restaurant News.

As executive editor, Mike oversees the editorial content of supermarketnews.com as well as the monthly print publication. He also directs all content-based brand-related projects including the annual Top 75 Retailers report, Category Guide, Retailer of the Year, research surveys and special reports, as well as podcast and webinar content. Mike has also presented and moderated at industry events.

In addition to the positions mentioned above, Mike has also worked as a writer and/or editor for special projects at American Legal Media (ALM), managing editor for Tobacco International, special projects editor at American Banker • Bond Buyer, and as production editor for Bank Technology News and other related financial magazines and journals published by Faulkner & Gray.

A graduate of Fordham University, Mike is based in New York City, where he was born and raised.

Contact Mike at [email protected] or follow him on Twitter and LinkedIn.

 

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News

You May Also Like