Kroger teams up with Ocado in opening new distribution facility in the US

USA – The Kroger Company, America’s largest grocery retailer has partnered with British online grocer, Ocado in setting up and operating a new Customer Fulfillment Center (CFC) located in Frederick, Maryland.

The facility will support Kroger’s e-commerce initiatives in Washington, Baltimore and Philadelphia and improve the retailer’s efficiencies.

“Kroger is incredibly excited to construct one of our industry-leading Customer Fulfillment Centers in Maryland in relationship with Ocado to bring fresh food to our customers faster than ever before,” said Robert Clark, Kroger’s senior vice president of supply chain, manufacturing and sourcing.

“Through our strategic partnership, we are engineering a model for the region, leveraging advanced robotics technology and creative solutions to redefine the customer experience.”

The CFC model – an automated warehouse facility with digital and robotic capabilities – will be used to serve customers across the region.

“We are excited to bring Kroger and Ocado’s latest automated warehouse to Frederick. This site will be key to delivering amazing grocery experiences to households across Maryland, Pennsylvania and the District of Columbia.

“It will also create fantastic job opportunities for engineers looking to work alongside state-of-the-art robotics and automation,” said Luke Jensen, CEO of Ocado Solutions.

“The warehouse will be a key component of the seamless fulfilment ecosystem that Kroger is developing for customers 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,” Jensen added. 

This new 350,000-square-foot CFC will accelerate Kroger’s ability to expand its products to a larger footprint. Upon completion, the facility will create 400 new jobs and add up to 100 later as the service area of this facility expands.

It is expected to become operational 24 months after the site breaks ground and will service several markets, including Washington D.C., Baltimore and Philadelphia.

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