Since establishing a partnership with Ocado, Kroger has commissioned two fulfillment centers in Monroe and Groveland, FL. The company has announced ten Ocado centers ranging from 135,000 to 375,000 square feet in extent to be erected in Georgia, Maryland, Wisconsin and Michigan in addition to two in the Pacific Northwest. Further in the future, fulfillment centers will be established in southern states with six to be opened between 2022 and 2023.
Rodney McMullen, chairman and CEO stated, “We feel great about the momentum we are experiencing with Kroger Delivery and our partnership with Ocado and are strategically leveraging our assets to expand our operations in existing regions as well as entering new geographies on the East coast.”
On October 12th, Kroger announced an additional fulfillment center for Florida and the introduction of micro-fulfillment sites receiving stock from existing and proposed Ocado installations. Shoppers will place orders using a Kroger mobile app or by accessing Kroger.com. Existing and proposed fulfillment centers will cover a delivery radius of up to 100 miles. Each fulfillment center can match the sales of about 20 stores. Kroger will make use of hub and spoke configurations to extend the range of fulfillment centers.
During fiscal 2021 Kroger acquired 340,000 new digital customers and now operates 2,239 pick-up sites and 2,546 delivery locations. Digital sales advanced 114 percent on a two-year basis through the end of Fiscal 2021.