The Kroger Co. announced at its 2022 Business Update in Orlando that it will offer more Americans delivery through the addition of spoke facilities in Austin and San Antonio, Texas, and Birmingham, Alabama, powered by the Kroger Fulfillment Network and Ocado Group.
As a continuation of Kroger's entry into Florida in 2021 without physical stores, the new Texas and Alabama facilities will serve as new geographies for the organization, bringing modern ecommerce to the cities and extending the grocer's reach.
"Kroger today looks very different than it did in 1883 when we opened our first store. But the core principles that made that store successful—service, selection, value, and our commitment to our customers—remain the bedrock of our business," said Rodney McMullen, Kroger's chairman and CEO, in a statement.
"We continue to feel great about the momentum we're experiencing with Kroger Delivery and our partnership with Ocado, supporting Kroger in strategically leveraging our unique assets to expand in existing regions, including Atlanta, Cincinnati, and Dallas, as well as enter into new geographies like Austin, Birmingham, Cleveland, Oklahoma City, Orlando, San Antonio, South Florida, and the Northeast through a flexible network of differently sized, high-tech facilities operated by friendly and knowledgeable associates," continued McMullen.
The 70,000-square-foot spoke facility in northeast Austin, and the 67,000-square-foot facility in northeast San Antonio, pending finalization of lease negotiations, will collaborate with the hub in Dallas, serving as last-mile cross-dock locations that expand Kroger's grocery delivery services. Both facilities are expected to become operational later this year and create up to 161 job opportunities each.
The 50,000-square-foot spoke facility, located in Birmingham, Alabama, will collaborate with the hub in Forest Park, Georgia. The facility also is expected to create up to 161 job and become operational later this year.
"Kroger's growing seamless ecosystem continues to scale and allow us to reach customers who are not in the proximity of a store with delivery services, and we're committed to doubling both our digital sales and profitability passthrough rate by the end of 2023, and our continued network expansion will help us reach this target,” said Yael Cosset, Kroger's chief information officer and chief digital officer, in a statement.
Gabriel Arreaga, Kroger's senior vice president and chief supply chain officer, add in a statement, "This network is enabling Kroger to create thousands of technology, operations, logistics, and customer care jobs and improve access to fresh food in cities eager for the variety and value offered by Kroger that once could only be accessed through our stores.”
Related: H-E-B Breaks Ground on Store in McKinney, Texas; Kroger Adds Cleveland Region Fulfillment Network.