Kroger is expanding its delivery service in the Lone Star State with the opening of a new spoke in Austin.
The 70,121 square-foot facility will work in conjunction with the Dallas fulfillment center and employ about 70 people.
"Austin is one of the fastest-growing cities in the country, and we are thrilled to connect more customers to the Kroger Delivery shopping experience, which brings thousands of digital coupons, valuable fuel points and the freshest products directly to customers' doors," said Rebekah Manis, senior director, Kroger Delivery Fulfillment Centers. "Whether they are using the Kroger app or browsing our weekly ad at Kroger.com, customers can enjoy fresh, high-quality, affordable groceries delivered by best-in-class uniformed drivers."
The new delivery service is also filling a need in Austin’s District 1, according to Natasha Harper-Madison, city council member in District 1.
"Much of District 1 is what the USDA identifies as a 'food desert,' which is defined as an area where residents have limited options for securing affordable and healthy foods. And although this Kroger facility will serve all of Austin, it's important to note that its location is in one of these areas," she said. "I am glad to see Kroger making this investment in our community starting right here in District 1 where residents need access to healthy, fresh food."
The expansion to the Austin area represents an extension of a collaboration between Kroger and Ocado Group, best known as a supplier of technology for grocery e-commerce. In 2018, the companies announced a collaboration to establish a delivery network that combines artificial intelligence, advanced robotics and automation in a bold new way, bringing first-of-its-kind technology to America.
The delivery network relies on highly automated fulfillment centers. At the hub sites, more than 1,000 bots move around giant 3D grids, orchestrated by proprietary control systems. The grid, known as The Hive, contains totes filled with products and ready-to-deliver customer orders.
Kroger currently operates customer fulfillment centers in Monroe, OH; Groveland, FL; Forest Park, GA (Atlanta); Pleasant Prairie, WI; Dallas, TX; Romulus, MI (Detroit); Aurora, CO; and Frederick, MD; with additional customer fulfillment centers slated for California; Phoenix, AZ; Cleveland, OH; Charlotte, NC; as well as South Florida and the Northeast.