Sponsored By

Kroger plans three more Ocado automated warehouses

Online grocery facilities to serve Great Lakes, Pacific Northwest and West

Russell Redman

June 8, 2020

3 Min Read
Ocado_CFC_robot-closeup.jpg
So far, Kroger has announced plans for nine customer fulfillment centers, with the first slated to open in Monroe, Ohio, in early 2021.Kroger/Ocado

The Kroger Co. plans to build three new Ocado-powered automated warehouses in the Great Lakes, Pacific Northwest and West regions.  

Kroger didn’t yet disclose the specific locations of the robotics-driven customer fulfillment centers (CFCs), which will fill online grocery orders in their respective regions. So far, the Cincinnati-based supermarket giant has announced plans for nine CFCs, with the first slated to open in Monroe, Ohio, in early 2021.

“Kroger is incredibly excited to construct three additional industry-leading customer fulfillment centers across the country in relationship with Ocado to bring fresh food to our customers more conveniently than ever before,” Robert Clark, senior vice president of supply chain, manufacturing and sourcing at Kroger, said in a statement. “Through our strategic partnership, we are engineering a model for these regions, leveraging advanced robotics technology and creative solutions to redefine the customer experience.”

Compared to the previously announced CFCs, which are around 350,000 square feet, the new facilities will be smaller. Kroger said the CFCs will measure 300,000 square feet in the West, 200,000 square feet in the Pacific Northwest and 150,000 square feet in the Great Lakes. The company noted that the different sizes show the Ocado fulfillment ecosystem’s flexibility in serving various markets. Once operational, the new facilities will create more than 1,000 new jobs in total, with the potential for hundreds of additional career opportunities, Kroger said.

Related:Kroger to build Ocado warehouse in Maryland

Most recently, in January, Kroger announced that a 350,000-square-foot CFC will be built in Frederick, Md., to serve online customers in Maryland, Pennsylvania and the District of Columbia, including the Baltimore, Philadelphia and Washington, D.C., metropolitan markets.

In November, Kroger said it plans to construct a 350,000-square-foot CFC in Pleasant Prairie, Wis., to process online grocery orders in Wisconsin, northern Illinois and northwest Indiana. Last June, the retailer broke ground on the 335,000-square-foot Monore CFC was slated to do so for 375,000-square-foot CFCs in Groveland, Fla., and Forest Park, Ga., later in 2019. In September, the company had announced plans to break ground in early 2020 for a 350,000-square-foot CFC in Dallas.

“Kroger and Ocado are building an e-commerce ecosystem across the U.S. that will deliver unrivalled online experiences to more customers, in more ways and in more markets,” stated Luke Jensen, CEO of Ocado Solutions, which has its U.S. headquarters in Tyson, Va. “Spanning a range of automated CFC sizes, these three new sites will be key parts of this growing and flexible fulfillment 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.”

Related:Sobeys CEO Michael Medline calls Ocado online grocery platform ‘game-changing’

Dubbed as “sheds,” the Ocado CFCs use automation and artificial intelligence (AI) to service e-grocery orders. When announcing their partnership in May 2018, Kroger and United Kingdom-based Ocado said they plan to open 20s CFCs in the United States over the next three years.

The companies aim to replicate the CFC model as they build the facilities across the country, extending Kroger’s online grocery reach — possibly into new markets where it doesn’t have brick-and-mortar stores. Kroger has said the CFCs cost about $55 million apiece to build and will give customers “anytime, anywhere” ability to place online orders.

Kroger didn’t specify opening timetables for the three new CFCs or the Frederick facility. The Monroe, Groveland and Forest Park CFCs are expected to be up and running in 2021, and the Dallas and Pleasant Prairie sheds are slated to become operational in 2022. Kroger has said the automated warehouses go into operation 24 months after ground is broken on the site.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News

You May Also Like