Kroger, Ocado break ground on $55m customer fulfillment center in Monroe

US grocery retailer Kroger in partnership with online grocery retailer Ocado as started construction on a high-tech customer fulfillment center in Monroe, Ohio.

Kroger will be injecting $55 million for the construction of its first shed spread over 335,000sft and expected to create over 400 new jobs. The new Kroger customer fulfillment center in Monroe will become operational in spring 2021.

The shed for the customer fulfillment center in Monroe will be designed and built by Ryan Companies US, which will serve as a model for projects across the US in the future. The new complex is expected to support Kroger’s accelerate growth in online grocery.

Rodney McMullen – Kroger chairman and CEO said: “Kroger is incredibly excited to reach this meaningful milestone in our Restock Kroger vision to serve America through food inspiration and uplift.

“Our partnership with Ocado will introduce transformative ecommerce, fulfillment and logistics technology in the U.S. and bring customers fresher food faster than ever before, accelerating our ability to provide anything, anytime, anywhere.”

Kroger, Ocado begin construction on $55m customer fulfillment center in Monroe. Photo courtesy of The Kroger Co.

The new customer fulfillment center in Monroe will be an automated warehouse facility equipped with digital and robotic capabilities. The model of the Monroe customer fulfillment center will be replicated to cater to customers across the US.

Kroger is planning to open 20 customer fulfillment center to support its objective to deliver a seamless customer experience. The US grocery retailer has selected two additional sites located in Central Florida and Mid-Atlantic regions for its customer fulfillment centers.

Luke Jensen – CEO of Ocado Solutions said: “This is a historic moment for our partnership. With construction starting for Kroger’s first customer fulfillment center in the Cincinnati region, we are now well on the way to a nationwide revolution in how Kroger customers experience ecommerce.

“In a fast-developing landscape for grocery retail, Kroger’s determination to continue delivering the best experience for its customers, online as in stores, is unparalleled. I am excited that we will shortly bring the world-class innovation of the Ocado Smart Platform to their operations, as well as create exciting opportunities for engineers and technologists across the country to work with Ocado’s cutting edge robotics and automation.”

In May 2018, Kroger and Ocado entered into an exclusive partnership in the US to enable the former to offer every family in the US with the convenience of shopping for anything, anywhere and at any time.