The Kroger Co. and Ocado, one of the world's largest dedicated online grocery retailers, broke ground on America's second customer fulfillment center, located in Groveland, FL — a new market for the retailer.
"Kroger is excited to enter Florida to redefine the customer experience through our industry-leading partnership with Ocado," said Rodney McMullen, Kroger's chairman and chief executive officer. "There's a substantial demand for Kroger products and services in the state, and we're eager to offer a new and seamless experience through the customer fulfillment center, leveraging advanced robotics technology and creative solutions to provide customers with anything, anytime, anywhere."
Kroger's first CFC — an automated warehouse facility with digital and robotic capabilities, also known as a shed — is being constructed in Monroe, OH. The CFC model is now being replicated in Groveland and will continue in cities across the United States to serve customers. Kroger intends to open 20 CFCs as it transforms to become an omnichannel retailer. Two additional sites have been named in Forest Park, GA, and the Mid-Atlantic region.
Kroger is investing $55 million to build the CFC in Groveland, which will measure up to 375,000 square feet and is expected to generate up to 400 new jobs.
"This is another significant milestone for Kroger and Ocado, and a big step toward a nationwide revolution in how Kroger customers experience grocery ecommerce," said Tim Steiner, CEO of Ocado Group. "As they enter Florida for the first time, Kroger is breaking ground in more ways than one, and I am delighted to bring Ocado's world-class technology to its operations in such an important market. Our partnership is also creating exciting opportunities for technologists and engineers to work with Ocado's cutting-edge robotics and automation. As this site develops, we look forward to welcoming new talent to our skilled, dedicated and growing teams across the United States."
"Kroger is especially grateful to the state of Florida, Groveland and Lake County for working with us to introduce Kroger to central Florida residents," continued McMullen. "We look forward to recruiting talent and transforming the ecommerce, fulfillment and logistics landscape to bring Florida customers fresher food faster than ever before."