The Kroger Co. has added a customer fulfillment center in a new region—northeast Ohio. The facility will be powered by the Ocado Group and combine vertical integration, machine learning, and robotics to provide an affordable, friendly, and fast fresh food delivery service, says the retailer.
"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,” said Gabriel Arreaga, Kroger's senior vice president and chief supply chain officer, in a statement.
The CFC will measure 270,000 square feet and is expected to create up to 400 jobs. It’s scheduled to become operational 24 months after the site breaks ground and will service areas in northeastern Ohio and Pennsylvania. Kroger will work with JobsOhio and Team NEO to deliver this project.
The expansion in the Cleveland region represents an extension of a partnership between Kroger and Ocado, a provider of technology for grocery ecommerce. In 2018, the companies announced a collaboration to establish a delivery network that combines artificial intelligence, advanced robotics, and automation in a bold new way, bringing first-of-its-kind technology to America.
Kroger Chairman and CEO Rodney McMullen said in a statement of Kroger Delivery, “It underpins the permanent shift in grocery consumer behavior and elevates our position as one of America's leading e-commerce companies."
Related: Target to Invest $5B to Scale Operations; Walmart Hones Last-Mile Delivery.