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US retailer Kroger, in collaboration with UK online supermarket Ocado, has selected Dallas city in Texas, as the location of its fifth customer fulfilment centre (CFC).

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

Kroger noted that the 350,000ft2 CFC will be built at Interstate 20, at the corner of 4200 Cleveland Road and 4241 Telephone Road.

Construction will begin early next year and with the CFC expected to be operational in the following 24 months. The investment is expected to generate up to 400 employment opportunities.

Kroger supply chain, manufacturing and sourcing senior vice president Robert Clark said: “Kroger is incredibly excited to construct one of our industry-leading Customer Fulfillment Centers in Dallas, Texas – one of the largest cities in America – in relationship with Ocado to bring fresh food to our customers faster than ever before.

“Through our strategic partnership, we are engineering a model for the region, leveraging advanced robotics technology and creative solutions to redefine the customer experience for our customers in North Texas and across America.”

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By GlobalData

The CFC model is an automated warehouse facility featuring digital and robotic capabilities, which will be replicated to serve customers across the country.

In July this year, Kroger and Ocado started the construction of the 375,000ft2 Groveland CFC in Florida.

The company also announced a $55m investment to establish a new CFC in Forest Park during the same month.