Ocado and Kroger expand partnership and prep new CFC

Ocado and Kroger have announced plans to construct a new customer fulfilment centre (CFC) in the south region of the USA, alongside a roll-out of Ocado's in-store fulfilment software across Kroger stores, beginning in 2021.

The new facility will measure 200,000 square feet. Exact location and construction dates will be announced soon.

Luke Jensen, CEO at Ocado Solutions, says: “Grocery e-commerce has reached a critical trajectory in 2020. More consumers are shopping for food online than ever before, and the USA has seen a rapid, sustained expansion of the channel.”

“In the long-term, we know that winning online in grocery means having the best customer service, underpinned by the best operational economics.”

“In leveraging the wide range of Ocado fulfilment technologies, Kroger is accessing the best customer offering for online grocery in the world, proven in the UK, one of most developed and competitive markets for grocery online.”

NEW: 🇺🇸 Great news from @kroger today as we continue to expand our CFC network with a site in the South and extend our partnership to include the roll out of in-store fulfillment to Kroger stores next year! Full release available here: https://t.co/nJ5qsURYL1
— Luke Jensen (@LukeJensenOcado) November 24, 2020

The newly named location will complement Kroger’s previously announced CFC sites in Monroe, OH, Groveland, FL, Frederick, MD, Atlanta, GA, Dallas, TX, Pleasant Prairie, WI, and Great Lakes, Pacific Northwest and West regions.

Kroger plans to open the country’s first two CFC sites in Monroe, OH, a suburb of Cincinnati and Groveland, FL in early 2021.

In-store fulfilment software

Ocado’s in-store fulfilment solution includes proprietary software that supports associate efforts to assemble orders and makes it easier and more efficient for them to find products when fulfilling customer pickup orders.

“We continue to accelerate the development and rollout of customer-centric technology and digital capabilities to build a seamless ecosystem that combines the best of the physical store experience with the digital experience,” says Yael Cosset, Kroger’s Chief Technology and Digital Officer.

“Ocado’s in-store fulfilment capabilities, leveraging AI, will further contribute to continuous improvement of the customer pickup experience.”