Kroger to open second customer fulfilment centre in Groveland, Florida. Credit: The Kroger Co.

US retailer Kroger has selected Groveland, Lake County, Florida, to establish its second customer fulfilment centre (CFC) in collaboration with UK online supermarket Ocado.

The new CFC is part of the retailer’s service and operational agreement, signed in October last year, with Ocado to develop 20 CFCs over three years.

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Kroger will start the construction of the CFC at US Highway 27 and American Way in a 375,000ft2 of space later this year.

The facility is expected to be operational in 2021 and will use innovative robotics technology to offer automated storage and retrieval services to customers across America.

“Through our strategic partnership, we are leveraging advanced robotics technology and creative solutions to redefine the customer experience across America.”

Kroger business development senior vice president Alex Tosolini said: “Kroger is incredibly excited to construct one of our industry-leading Customer Fulfillment Centers in Groveland, Florida – a city west of Orlando – through our relationship with Ocado.

“Through our strategic partnership, we are leveraging advanced robotics technology and creative solutions to redefine the customer experience across America.”

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The new technology venture is expected to create more than 400 jobs to local and regional skilled workforce, according to the Lake County board of county commissioners chair Leslie Campione.

Kroger also announced that it will invest around £90m for the first three CFCs and more than £500m for the remaining centres through funding arrangements.

The retailer announced, in November last year, that it is investing $55m to establish the first CFC in Monroe, Ohio, which will feature digital and robotic capabilities and announced last month plans to establish two new CFCs in Central Florida and Mid-Atlantic.