Kroger, Ocado announce first U.S. automated warehouse

November 20, 2018 //By Rich Pell
Kroger, Ocado announce first U.S. automated warehouse
Grocery retail giant Kroger (Cincinnati, OH) and online grocery retailer Ocado (Hatfield, UK) have announced that the Cincinnati region has been selected for America's first Ocado high-technology customer fulfillment center (CFC), which will introduce robotics technology that will allow for next-generation automated storage and retrieval.

Kroger's first automated warehouse facility with digital and robotic capabilities - also known as a "shed" – will be constructed in Monroe, OH, a suburb north of Cincinnati. The CFC model, says the company, will be replicated to serve customers across America, with the opening of 20 CFCs planned.

"Kroger is joining with the best partners in the world to co-innovate and leverage technology to redefine the customer experience," says Rodney McMullen, Kroger's chairman and CEO. "We are incredibly excited to partner with Ocado to transform the industry and deliver on our Restock Kroger vision to serve America through food inspiration and uplift. This Kroger shed, powered by Ocado, will accelerate our ability to provide customers with anything, anytime and anywhere."

Kroger is investing $55 million to build the shed, which will measure 335,000 square feet and is expected to generate more than 410 new jobs. Earlier this year, Kroger and Ocado announced an alliance to bring to the U.S. Ocado's technologies. In October, the companies signed a master services agreement to further solidify their partnership.

"Ocado is a UK-based company with global ties and advanced digital and robotic capabilities," says Alex Tosolini, Kroger's senior vice president of new business development. "Working together, we will develop the strongest possible supply network to support a seamless customer experience that can serve every person in America. It's all about building a seamless supply chain to provide our customers with an amazing shopping experience."

Kroger
Ocado

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