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Kroger Delivery introduces first US customer fulfillment center

By Lauren Fruncillo April 14, 2021 - 9:57 pm

Kroger Delivery have announced the introduction of America’s first Customer Fulfillment Center powered by Ocado. The CFC is the first to open, transforming and supporting the grocer’s thriving digital business.

“2020 was a pivotal year for grocery e-commerce, with Kroger’s digital business scaling to over $10 billion—and achieving a record digital sales increase of 116%. We’re incredibly proud to achieve this milestone that advances our position as one of America’s leading e-commerce companies. The momentum we’re experiencing is well-timed with the evolution of Kroger Delivery, underpinning the permanent shift in grocery consumer behavior and need for enterprising and modern e-commerce and last-mile solutions—today’s true competitive horsepower.”
– Rodney McMullen, chairman and CEO, Kroger

In 2018 Kroger and Ocado formed an exclusive partnership to introduce to the U.S. for the first time proprietary technology solutions focused on artificial intelligence, advanced robotics and automation, and creative solutions to create more seamless and efficient fulfillment, picking and delivery capabilities to provide customers anything, anytime, anywhere and expand Kroger’s reach and products to new geographies. With the introduction of Kroger Ship’s online marketplace in 2020, a move like this could really push their capabilities.

“This moment marks the next phase of our partnership, and it comes against the backdrop of soaring demand for online grocery options in the U.S. and worldwide. In the coming years, we will open more automated CFCs across a range of sizes with Kroger. We will also roll out components of our software solutions to stores in collaboration with Kroger’s existing seamless platform to support fulfillment of curbside pickup orders. The breadth of this fulfillment ecosystem will be crucial in helping Kroger to continue to win in e-commerce across the U.S.”
– Tim Steiner, Co-founder and CEO, Ocado Group

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