Kroger and Ocado are continuing their expansion efforts with their sixth distribution center—officially in the works. The companies announced that 20 distribution centers were on the books last year. This week, the partners named Pleasant Prairie, Wisconsin, as the home for their next Customer Fulfillment Center (CFC).
"Kroger is incredibly excited to construct one of our industry-leading Customer Fulfillment Centers in Pleasant Prairie, Wisconsin, in relationship with Ocado to bring fresh food to our customers faster than ever before," said Robert Clark, Kroger's Senior Vice President of Supply Chain, Manufacturing, and Sourcing. "Through our strategic partnership, we are engineering a model for the region, leveraging advanced robotics technology and creative solutions to redefine the customer experience for our customers in Wisconsin and Illinois."
According to a press release, the Pleasant Prairie CFC will measure 350,000 square feet and is expected to create up to 400 new jobs. The facility will also serve customers in Wisconsin, northern Illinois, and northwest Indiana.
"We are excited to bring Kroger and Ocado's latest automated warehouse to Pleasant Prairie. As this site develops and goes live, it will be instrumental in delivering fantastic grocery experiences and exciting job opportunities to households across Chicago, Milwaukee, and beyond," said Luke Jensen, CEO of Ocado Solutions. "Today's announcement marks another big milestone on the road to developing a seamless fulfilment ecosystem for Kroger customers 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."
Thus far, Georgia, Ohio, Texas, and Florida have all been chosen to house CFCs, with some states, like Ohio, even housing two. All of the distribution centers are part of Kroger’s and Ocado’s plan to bolster the supply chain and stay on top of consumer demand.
"This project expands Kroger's commitment to continued investment in Wisconsin and Illinois. With this cutting-edge technology, Kroger is confident our partnership with Ocado will play an integral role in the continued commerce growth of this dynamic region," added Michael Marx, Kroger Roundy's President. "This transformative fulfillment center will create local jobs and accelerate Kroger's ability to expand our products and services to a larger footprint, providing customers with anything, anytime, anywhere."
While Kroger didn’t disclose the specificities of when it will be breaking ground and opening the doors on its CFC in Wisconsin, it did note that the facility will be operational 24 months after the project begins construction.
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