Kroger reveals site details for first Ocado mini CFC
Kroger has confirmed Romulus, Michigan, as the site for its first Ocado powered mini customer fulfilment centre (CFC).
The 135,000-square-foot facility facility will set the retailer back $95 million. 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.
“We are incredibly excited to develop one of our industry leading CFCs in Michigan in relationship with Ocado to bring fresh food to our customers faster than ever before," says 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."
"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,” adds Luke Jensen, CEO at Ocado Solutions.
“Powered by our 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 maximise penetration across diverse markets. Our proven technology will allow Kroger to achieve the lowest cost-to-serve in the market, combined with the best freshness, accuracy and service."
