For years, Kroger has taken advantage of its partnership with industry leader Ocado. The two reported another development in their partnership, announcing that Romulus, Michigan, will be the latest location for a new Kroger Customer Fulfillment Center (CFC).
"Kroger is incredibly excited to develop one of our industry-leading Customer Fulfillment Centers in Michigan in relationship with Ocado to bring fresh food to our customers faster than ever before," said Robert Clark, Retiring Senior Vice President of Supply Chain, Manufacturing, and Sourcing for Kroger. "We continue to invest in and constantly improve our e-commerce capabilities, focusing on cost-effective solutions. Our partnership with Ocado is an essential part of our evolving seamless ecosystem. In Michigan, we are engineering a smaller model for the region, leveraging advanced robotics technology and creative solutions to redefine the customer experience and respond to the growing demand for grocery e-commerce services."
The above statement was made before Clark's retirement announcement, which was set for October 1.
The CFC model, an automated warehouse facility with digital and robotic capabilities, will be used to serve customers across the region. Kroger is designing a flexible distribution network, a press release explained, combining disaggregated demand and the proximity of its stores and facilities that vary in design and size.
"Grocery e-commerce has reached an inflection point in 2020, and with Kroger we are developing a game-changing ecosystem for serving online grocery across the United States. Powered by Ocado's state of the art technology, this site illustrates the unique flexibility of Ocado's technology, as we are able to deploy sites of different sizes in different regions, to maximize penetration across diverse markets," said Luke Jensen, CEO of Ocado Solutions. "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."
This new 135,000-square-foot CFC will accelerate Kroger's ability to expand its products to a larger footprint. This facility will create 250 new jobs, benefitting the City of Romulus/Aerotropolis region, according to a press release. It is expected to become operational 18 months after the site breaks ground and will support customers in several markets, including Michigan, Northern Ohio, and Indiana.
Deli Market News will continue to keep you updated on the latest in retail, so stay tuned.