US retailer Kroger is set to expand its customer fulfilment centres (CFC) network with two new CFCs in Central Florida and Mid-Atlantic in collaboration with UK online supermarket Ocado Group.
Kroger signed service and operational agreement with Ocado in October last year to develop 20 CFCs over the first three years. Ocado will develop and operate these CFCs in an effort to serve its customers better.
The company will equip these facilities with robotics technology for automated storage and retrieval.
Kroger chairman and CEO Rodney McMullen said: “Kroger is excited to partner with Ocado, one of the most innovative, advanced companies in the world, to redefine the grocery shopping experience for customers along the east coast.
“We are incredibly excited to introduce customer fulfilment centres in this region to deliver on our Restock Kroger vision to serve America through food inspiration and uplift.”
In November last year, Kroger announced its plans to invest $55m to establish its first CFC in Monroe, Cincinnati, Ohio, which is expected to create more than 410 new jobs.
Kroger new business development senior vice-president Alex Tosolini said: “Kroger is developing the retail model of the future through our exciting partnership with Ocado, a UK-based company with global ties.
“We will co-innovate with Ocado to develop the best possible experiences for our customers, leveraging advanced robotics technology and creative solutions.”
Kroger operates 2,800 retail food stores under a range of brands under various retail brands. It has around 500,000 employees to serve nine million customers every day.