Kroger ramps up Ocado Group powered Kroger Delivery service
America's largest grocery retailer, Kroger, is set to offer more people Kroger Delivery through the addition of five new customer fulfilment centres powered by Ocado Group.
It is planning to enter the northeast market and expand in California and Florida.
“Kroger Delivery is a thriving part of our dynamic ecosystem and is transforming grocery e-commerce and meeting a range of customer needs through the introduction of first of its kind technology in the US, developed by Ocado," says Rodney McMullen, Kroger's Chairman and CEO.
"Kroger's growing seamless ecosystem continues to scale, and we're committed to doubling both our digital sales and profitability rate by the end of 2023 and Kroger Delivery will help us reach this target.”
"We feel great about the momentum we're experiencing with Kroger Delivery and our partnership with Ocado and are strategically leveraging our assets to expand our operations in existing regions as well as enter new geographies on the east coast that leverage facilities across a growing range of sizes.”
The retailer plans to share more information about its plans for the northeast, California, and Florida, including customer coverage areas, job creation, facility sizes and timing, in the coming months.
"I am delighted that we're bringing Ocado's world leading technology to Kroger customers across the US," says Luke Jensen, CEO at Ocado Solutions.
"The northeast is another new geography for Kroger, and we're excited to enter it with them. Moreover, with the addition of fulfilment centres in Southern California, our partnership is truly revolutionising the US grocery online landscape from coast to coast.”
"Kroger is also leveraging the full breadth of Ocado's fulfilment capabilities to meet the growing range of customer wants and demands.”
“Alongside the current roll-out of our automated facilities and software to optimise fulfilment in stores for curbside pickup, today's announcement of a further CFC in Florida and the introduction of our first 'Zoom' micro fulfilment site in the US, serving the immediacy market, is a testament to the breadth and flexibility of the offering we are helping to bring to Kroger shoppers.”
“These fulfilment centres will also benefit from significant upstream efficiencies, with the existing CFC in Groveland able to act as a major supply hub into the new Florida sites."
Kroger Delivery currently operates CFCs in Groveland, FL and Monroe, OH and in addition to the newly announced five facilities, it is slated to open previously announced sites in Dallas, TX; Forest Park, GA (Atlanta); Frederick, MD; Phoenix, AZ; Pleasant Prairie, WI; Romulus, MI (Detroit); and sites in the South, West and Pacific Northwest.
