Kroger, Ocado To Build Customer Fulfillment Center

Kroger and Ocado, an online grocery retailer, have selected the Cincinnati region for the partnership’s first high-tech customer fulfillment center (CFC).

Kroger’s first CFC, an automated warehouse facility with digital and robotic capabilities, will be constructed in Monroe, OH, a suburb north of Cincinnati, subject to securing state and local incentives. Kroger is planning to open 20 CFCs in the future. The center will introduce innovative robotics technology, allowing for next-generation automated storage and retrieval.

Kroger is investing $55 million to build the first facility, which will measure 335,000 square feet and is expected to generate more than 410 new jobs.

Earlier this year, Kroger and Ocado announced an alliance to bring to the U.S. Ocado’s innovation and technologies. In October, the companies signed a master services agreement to further solidify their partnership.

“Kroger is joining with the best partners in the world to co-innovate and leverage technology to redefine the customer experience,” said Rodney McMullen, Kroger’s chairman and CEO. “We are incredibly excited to partner with Ocado to transform the industry and deliver on our Restock Kroger vision to serve America through food inspiration and uplift. This Kroger shed, powered by Ocado, will accelerate our ability to provide customers with anything, anytime and anywhere.”