The Kroger Co. has announced it will offer delivery through the addition of a customer fulfillment center in Cleveland, Ohio.
The facility will be powered by the Ocado Group and combine vertical integration, machine learning and robotics to provide an affordable and fast fresh food delivery service.
“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, Kroger’s SVP and chief supply chain officer.
“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.”
“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.
“This announcement marks another milestone to developing Kroger’s seamless fulfillment ecosystem across the United States. Ocado’s proven technology will allow Kroger to achieve the lowest cost-to-serve in the market, combined with the best freshness, accuracy and service in grocery delivery.”
The customer fulfillment center will measure 270,000 square feet and is expected to create up to 400 new jobs. It’s expected to become operational 24 months after the site breaks ground. Kroger appreciates its partnerships with JobsOhio and Team NEO to deliver this project.
“Kroger Fulfillment Network’s cutting-edge facility will utilize the latest robotics and logistics technology, helping improve access to fresh food in communities without physical stores while creating 400 good-paying jobs,” said J.P. Nauseef, JobsOhio president and CEO. “This will be Kroger Fulfillment Network’s second hub distribution facility in the state, demonstrating the advantage Ohio provides to build out the U.S. supply chain.”
“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,” said Bill Koehler, Team NEO CEO. “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.”
The expansion in the Cleveland region represents an extension of a partnership between Kroger and Ocado, a world leader in technology for grocery e-commerce. In 2018, the companies announced a collaboration to establish a delivery network that combines artificial intelligence, advanced robotics and automation.
Kroger Chairman and CEO Rodney McMullen said Kroger Delivery “underpins the permanent shift in grocery consumer behavior and elevates our position as one of America’s leading e-commerce companies.”
Kroger unveiled its Monroe, Ohio customer fulfillment center in April 2021, its first, followed by centers in Groveland, Florida and Forest Park, Georgia. The Dallas fulfillment center is slated to open this spring with additional customer fulfillment centers slated for California, Arizona, Wisconsin, Michigan, as well as South Florida and the Northeast and West.
For more information, visit thekrogerco.com.