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Kroger reaches into Pennsylvania with new Ocado e-commerce center

Northeastern Ohio facility to bring grocer into another market where it lacks stores

Russell Redman

March 2, 2022

3 Min Read
Kroger Ocado Monroe CFC-Kroger Delivery Van-front.png
So far, Kroger has announced 17 Ocado customer fulfillment centers. The first, in Monroe, Ohio, opened in April 2021.The Kroger Co.

The Kroger Co. plans to open another Ocado-automated customer fulfillment center (CFC) in Ohio, enabling the supermarket giant to serve consumers in Pennsylvania — where it has no physical stores — via online grocery service.

Though not specifying the facility’s location, Kroger said Thursday the 270,000-square-foot, “Cleveland region” CFC will serve areas in northeastern Ohio and Pennsylvania, with the latter representing the retailer’s 37th state. The automated warehouse, which will create 400 jobs, is expected to go into operation 24 months after the project’s ground-breaking.

Cincinnati-based Kroger’s first Ocado facility, a 375,000-square-foot CFC in Monroe, Ohio, opened last April.

“Kroger is incredibly excited to expand our delivery business in our home state and provide northeast Ohioans access to thousands of fresh and popular products, including our industry-leading Private Selection and Simple Truth brands, through our customer fulfillment center,” Gabriel Arreaga, senior vice president and chief supply chain officer at Kroger, said in a statement. “The Cleveland region facility is an accelerant to our strategy to achieve the doubling of our digital sales and profitability rate by the end of 2023, and we’re eager to provide a rewarding experience for our new customers in northeastern Ohio and Pennsylvania and create new jobs for individuals passionate about technology, engineering, operations, logistics and transportation, inventory and quality management, and customer service and engagement.”

Related:Kroger to enter Oklahoma via Ocado e-commerce ‘spoke’

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Kroger's partnership with Ocado is enabling the U.S. supermarket giant to use online grocery delivery to enter new market areas without having to open brick-and-mortar stores.

Thus far, Kroger has announced 17 CFCs, with three — including the Monroe facility — now fully operational. A 375,000-square-foot CFC in Forest Park, Ga., opened in early February, following the launch of another 375,000-square-foot CFC in Groveland, Fla., that went live in June in a state where Kroger doesn’t have physical stores. In December, Kroger also said it aims to build a 200,000-square-foot CFC in North Carolina.

The other Ocado CFCs reported by Kroger run from 135,000 to 375,000 square feet and include locations in Dallas; Frederick, Md.; Phoenix; Pleasant Prairie, Wis.; and Romulus, Mich., as well as unspecified sites in the Pacific Northwest, West and Northeast, the latter representing another location where Kroger lacks stores. The retailer also has announced plans for two CFCs in Southern California and two more in Florida.

“We are excited to bring Kroger and Ocado’s second automated warehouse to Ohio. As this site develops and goes live, it will be instrumental in delivering fantastic grocery experiences and exciting job opportunities to households across Cleveland, Pennsylvania and beyond,” commented Luke Jensen, CEO of Ocado Solutions, which has its U.S. headquarters in Tyson, Va. “Today’s announcement marks another milestone to developing Kroger’s seamless fulfillment ecosystem across the United States. Ocado’s proven technology will allow Kroger to achieve the lowest cost-to-serve in the market, combined with the best freshness, accuracy and service in grocery delivery.”

Related:Kroger goes live with Ocado automated warehouse in Atlanta

In addition, Kroger has launched three “spoke” supporting facilities with Ocado technology — in Indianapolis and in Tampa and Jacksonville, Fla. — and plans two more in Louisville, Ky., and Oklahoma City. The latter spoke site was announced last month and will bring Kroger into its 36th state, Oklahoma.

Kroger announced its partnership with United Kingdom-based Ocado Group in May 2018, at which time the companies said they planned 20 CFCs in the United States over the next three years. The Ocado CFCs and supporting facilities use vertical integration, machine learning and robotics to service online grocery orders and are expected to expand Kroger’s reach to a larger geographic footprint, including in areas where it doesn’t operate brick-and-mortar stores.

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The Kroger Co.

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

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