The Kroger Co., America's largest grocery retailer, has expanded its Kroger fulfillment network with the addition of a delivery "spoke" that brings innovation and modern e-commerce to the Indianapolis area. The expansion will create 150 jobs in the community.
"The new service is a wonderful addition to the expanding digital experience available to Kroger customers,” said Colleen Juergensen, president of Kroger's Central Division, in a statement. “The network's delivery spoke will provide unmatched customer service and improve access to fresh food in areas eager for the variety and value offered by Kroger.”
The 48,000-square-foot facility will collaborate with the hub in Monroe, Ohio, to connect customers with fresh food. The coverage area includes Central Indiana zip codes, mostly in the Indianapolis area, and Richmond, which is near the hub in Ohio.
After placing an order on the company’s website or app, customers will have their groceries delivered by a Kroger Delivery associate in a temperature-controlled van. The associate will deliver industry-leading customer service, including ensuring order freshness and satisfaction, managing order changes, and informing customers of their loyalty membership benefits like earned fuel points and digital coupon savings. The delivery network will also continue to leverage stores and third-party partners to deliver certain orders.
Kroger Delivery will offer variable delivery fees that do not require customers to provide a tip and are influenced by several factors like a customer's loyalty, delivery window popularity, route optimization, and the lead time of an order.
The expansion in Indianapolis represents an extension of a partnership between Kroger and Ocado, a world leader in technology for grocery e-commerce. In 2018, the companies established a delivery network that combines artificial intelligence, advanced robotics, and automation.
Kroger Chairman and CEO Rodney McMullen said Kroger Delivery "underpins the permanent shift in grocery consumer behavior and elevates our position as one of America's leading e-commerce companies." Through the delivery network, the company now serves customers in Florida, as an example, without traditional brick-and-mortar stores.
Related: Uber Expands Grocery Delivery; Albertsons Introduces Unlimited Grocery Delivery.