Kroger and Ocado Announce Location of High-Tech Customer Fulfillment Center in Romulus, Michigan

Rhea-AI Summary

The Kroger Co. (NYSE: KR) and Ocado announced a new Customer Fulfillment Center (CFC) in Romulus, Michigan, as part of their expansion in the Great Lakes Region. This high-tech facility, costing $95 million, is expected to create 250 jobs and improve grocery delivery services. The 135,000-square-foot CFC will leverage advanced robotics to enhance e-commerce capabilities and is projected to be operational within 18 months. This investment reflects Kroger's commitment to enhancing access to fresh food and streamlining logistics in the region.

Positive

• Kroger invests $95 million in a new Customer Fulfillment Center.
• Creation of 250 new jobs in Romulus.
• The facility will enhance grocery delivery services in Michigan and surrounding states.

Negative

• None.

ROMULUS, Mich., Sept. 28, 2020 /PRNewswire/ -- The Kroger Co. (NYSE: KR), America's largest grocery retailer, and Ocado (LSE: OCDO), a world leader in technology for grocery ecommerce, today announced Romulus, MI, as the latest location for a Customer Fulfillment Center (CFC). The location confirms a previous announcement stating Kroger and Ocado would construct a CFC in the Great Lakes Region.

"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, Kroger's senior vice president of supply chain, manufacturing and sourcing. "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."

Kroger has partnered with Ocado to accelerate its ability to provide customers with anything, anytime, anywhere. 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, combining disaggregated demand and the proximity of its stores and facilities that vary in design and size.

"Grocery ecommerce 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."  

"Kroger's decision to invest $95 million and create 250 new jobs in Romulus further demonstrates that Wayne County is a global leader in logistics and fulfillment industries. Kroger's continued commitment to our region with the innovative new grocery delivery service provided by this high-tech facility will help improve access to fresh foods in southeast Michigan at a time when this service is more important than ever to keep residents safe and healthy," said Warren Evans, Wayne County Chief Executive.

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.

The facility will be located at 15675 Wahrman in Romulus. The CFC 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.

About The Kroger Co.
At The Kroger Co. (NYSE: KR), we are Fresh for Everyone™ and dedicated to our Purpose: To Feed the Human Spirit®. We are, across our family of companies, nearly half a million associates who serve over 11 million customers daily through a seamless shopping experience under a variety of banner names. We are committed to creating #ZeroHungerZeroWaste communities by 2025. To learn more about us, visit our newsroom and investor relations site.

About Ocado Solutions
Ocado Solutions is responsible for Ocado's corporate partnerships, providing the Ocado Smart Platform (OSP) as a service to retailers around the world. OSP comprises access to Ocado's physical infrastructure solutions, running highly efficient warehouse operations for the single pick of products, together with the entire end-to-end proprietary software applications required to operate a world class online grocery business. It is underpinned by Ocado's proven expertise and experience as a dedicated online grocer in the UK.

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SOURCE The Kroger Co.

FAQ

What is the new Customer Fulfillment Center announced by Kroger in Michigan?

Kroger and Ocado announced a new Customer Fulfillment Center in Romulus, Michigan, to enhance e-commerce capabilities.

How much is Kroger investing in the new facility in Romulus?

Kroger is investing $95 million in the new Customer Fulfillment Center.

How many jobs will the new Kroger facility create?

The new facility is expected to create 250 new jobs.

When will the new Customer Fulfillment Center in Romulus become operational?

The facility is projected to be operational 18 months after breaking ground.

What technology will be used in Kroger's new Customer Fulfillment Center?

The facility will leverage advanced robotics technology for efficient grocery delivery.