The Kroger Co. (NYSE: KR), America’s largest grocery retailer, and Ocado (LSE: OCDO), a world leader in technology for grocery ecommerce, today announced Romulus, MI, as the latest location for a Customer Fulfillment Center (CFC). The location confirms a previous announcement stating Kroger and Ocado would construct a CFC in the Great Lakes Region.
“Kroger is incredibly excited to develop one of our industry-leading Customer Fulfillment Centers in Michigan 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. “We continue to invest in and constantly improve our e-commerce capabilities, focusing on cost-effective solutions. Our partnership with Ocado is an essential part of our evolving seamless ecosystem. In Michigan, we are engineering a smaller model for the region, leveraging advanced robotics technology and creative solutions to redefine the customer experience and respond to the growing demand for grocery e-commerce services.”
Kroger has partnered with Ocado to accelerate its ability to provide customers with anything, anytime, anywhere. The CFC model – an automated warehouse facility with digital and robotic capabilities – will be used to serve customers across the region. Kroger is designing a flexible distribution network, combining disaggregated demand and the proximity of its stores and facilities that vary in design and size.
“Grocery ecommerce has reached an inflection point in 2020, and with Kroger we are developing a game-changing ecosystem for serving online grocery across the United States. Powered by Ocado’s state of the art technology, this site illustrates the unique flexibility of Ocado’s technology, as we are able to deploy sites of different sizes in different regions, to maximize penetration across diverse markets,” said Luke Jensen, CEO of Ocado Solutions. “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.”
“Kroger’s decision to invest $95 million and create 250 new jobs in Romulus further demonstrates that Wayne County is a global leader in logistics and fulfillment industries. Kroger’s continued commitment to our region with the innovative new grocery delivery service provided by this high-tech facility will help improve access to fresh foods in southeast Michigan at a time when this service is more important than ever to keep residents safe and healthy,” said Warren Evans, Wayne County Chief Executive.
This new 135,000-square-foot CFC will accelerate Kroger’s ability to expand its products to a larger footprint. This facility will create 250 new jobs, benefitting the City of Romulus/Aerotropolis region.
The facility will be located at 15675 Wahrman in Romulus. The CFC is expected to become operational 18 months after the site breaks ground and will support customers in several markets, including Michigan, Northern Ohio, and Indiana.
