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Supply Chain

Kroger To Build Three New CFCs In Association With Ocado

Supermarket chain Kroger has announced plans to construct three new customer fulfilment centres (CFC) in partnership with Ocado to meet the requirements of its e-commerce business.

Luke Jensen, CEO of Ocado Solutions, said, “Kroger and Ocado are building an e-commerce ecosystem across the US that will deliver unrivalled online experiences to more customers, in more ways, and more markets.”

The state-of-the-art warehouses will be located in the Great Lakes, Pacific Northwest, and West regions.

'Strategic Partnership'

Robert Clark, Kroger's senior vice president of supply chain, manufacturing and sourcing, said, "Through our strategic partnership, we are engineering a model for these regions, leveraging advanced robotics technology and creative solutions to redefine the customer experience."

The size of the CFCs will correspond to the respective markets, Kroger added.

The new CFC in the West will cover an area of 300,000 square feet, while the warehouse in Pacific Northwest will measure 200,000 square feet.

The facility in the Great Lakes region will occupy an area of 150,000 square feet.

'Flexible Fulfilment Network'

Jensen explained, "Spanning a range of automated CFC sizes, these three new sites will be key parts of this growing and flexible fulfilment network.

“Alongside the scale and wider benefits of larger CFCs, smaller format and mini CFCs will allow Kroger to reach more geographies with Ocado's automation, while also catering to a wide range of options for delivery."

The three warehouses will create more than 1,000 new jobs and offer hundreds of additional career opportunities when fully operational.

© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.

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