Kroger, Ocado break ground on futuristic fulfillment facility

The partnership between Cincinnati-based The Kroger Co. and U.K.-based Ocado has led to the companies breaking ground on a $55 million customer fulfillment center.

According to the companies, the center — an automated warehouse facility with digital and robotic capabilities — will also be known as a “shed.” Kroger is investing $55 million to build the 335,000-sq.-ft. facility, which is being constructed in Monroe, Ohio.

Building new technologically advanced CFCs is part of a larger strategy called “Restock Kroger,” which the company introduced in October 2017. According to Kroger, the CFCs align with Restock Kroger priorities to fund technology and infrastructure upgrades, as well as to leverage robotics and artificial intelligence to transform the customer experience.

“Our partnership with Ocado will introduce transformative e-commerce, 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,” said Rodney McMullen, Kroger’s chairman and CEO.

Kroger hired Ryan Companies U.S. to design and build the facility, with the design serving as a model for future projects. The grocer said it intends to open 20 CFCs to support its vision “to create a seamless customer experience.” Two additional locations have already been selected, in the Central Florida and Mid-Atlantic regions.