Kroger plans new fulfillment center in Oklahoma City
Kroger is continuing to grow its fulfillment network to allow for expanded delivery of its private label products. Following the recent openings of fulfillment centers in Indianapolis, North Carolina, and Atlanta, America’s largest grocery retailer has announced the future addition of a spoke facility in Oklahoma City, powered by the Ocado Group.
The 50,000-square-foot spoke facility located in Oklahoma City will collaborate with the facility in Dallas, Texas to serve as a last-mile cross-dock location that efficiently expands Kroger's grocery delivery services and extends its reach to customers up to 200 miles from the facility. The facility is expected to become operational later this year and will employ up to 191 full-time associates.
"We're excited to extend the Kroger fulfillment network to Oklahoma City, a new geography for our operation and an integral part of our strategy to achieve the doubling of our digital sales and profitability rate by the end of 2023," said Gabriel Arreaga, Kroger's senior vice president and chief supply chain officer. "This grocery delivery service is an innovative addition to the expanding digital shopping experience available to our customers. The spoke facility will provide unmatched, impeccable customer service and improve direct access to fresh food in areas eager for the variety and value offered by Kroger."
After placing an order via Kroger.com or the Kroger app, customers in regions where a Customer Fulfillment Center (CFC) is located have groceries delivered by a Kroger Delivery associate in a temperature-controlled van. Kroger Delivery is a vertically integrated network, enabling coverage of up to 90 miles from the hub location in Oklahoma City. As customers' orders near their delivery times, automated bots inside the facility retrieve products from “The Hive” which are presented at stations for items to be sorted for delivery. Once completed, orders are loaded into a temperature-controlled Kroger Delivery van, which can store up to 20 orders.
"We are excited to welcome the country's largest supermarket to Oklahoma that will further showcase our state's impressive distribution infrastructure," said Oklahoma Governor Kevin Stitt. "Kroger's new e-commerce model is innovative, creates new fresh grocery opportunities for the Greater Oklahoma City region and paves the way for improving health and quality of life for Oklahomans."