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Kroger Inaugurates First Joint Venture Ocado Fulfillment Center

04/18/2021

On Wednesday, April 14th, Kroger officially inaugurated the Monroe, OH customer fulfillment center using Ocado Group technology.  The 375,000 square foot facility incorporates advanced robotics, automation and artificial intelligence for fulfillment and delivery.  According to press reports, the facility is equipped with 1,000 robots that move through a grid managed by a control system.  Robots pick products and transport them to a station where items are assembled for delivery.  The system is able to pack bags that are evenly weighted with fragile items placed on top. The facility required an investment of $55 million and took two years to erect.

 

Rodney McMullen, Chairman and CEO stated, "we are incredibly proud to achieve this milestone that advances our position as one of America's leading E-commerce companies.  The momentum we are experiencing is well-timed with the evolution of Kroger Delivery underpinning the permanent shift in grocery consumer behavior and the need for enterprising and modern E-commerce at last-mile solutions".

Inauguration of the Monroe fulfillment center marks the practical application of a joint venture established with an investment by Kroger in the U.K. Company in May 2018. The facility will be the first of twenty planned for the U.S. ranging in size from 135,000 square feet to 375,000 square feet.

 

Kroger will use a range of delivery modes including company vehicles and personnel and third-party partners including Instacart. At the end of fiscal 2020, Kroger stores operated 2,222 pickup sites and 2,470 delivery locations under a range of banners.