AURORA,
Colo., June 21, 2022 /PRNewswire/ -- The Kroger
Co. (NYSE: KR), America's largest grocery retailer, today announced
it will offer more Americans delivery through the addition of a new
customer fulfillment center (CFC) in Aurora, Colorado, powered by the Ocado Group (LSE:
OCDO), engineering a model for the region, leveraging advanced
robotics technology and creative solutions to redefine the customer
experience in the Denver Metro
Area.
"We are thrilled to expand and introduce our innovative Kroger
Fulfillment Network to one of the fastest growing areas in the
country and have the opportunity to grow our workforce," said
Gabriel Arreaga, Kroger's senior
vice president and chief supply chain officer. "Through the
incredible partnership and support from the City of Aurora and Adams County, Kroger Delivery can accelerate
its commitment to provide exceptional customer service through our
state-of-the-art facility and end-to-end cold solutions, including
custom-built refrigerated vans, to ensure our delivery customers
receive the freshest products directly to their doorstep throughout
the Denver region."
"As we continue to expand our nationwide CFC program, Kroger and
Ocado Group are now live with five state-of-the-art fulfilment
centers across the USA. As this
site ramps up, Kroger Delivery will bring a world class online
experience to homes across the Denver Metro area, powered by some of the most
advanced technology available anywhere in the world," said
Luke Jensen, CEO of Ocado
Solutions.
"Adams County is excited to
have this new state-of-the-art food distribution facility opening
in our community," said Lynn Baca,
Chair, Adams County Board of
Commissioners. "Not only will it showcase innovative sorting
technology, it will also help provide greater access to high
quality food and fresh produce for our residents. Providing a
delivery option will also benefit those in our community who may
have mobility issues, or simply lack the time to go into a physical
location."
The nearly 300,000 square-foot distribution center will bring
nearly 400 new jobs to Aurora and
adjacent communities.
Kroger Delivery Explained
This expansion represents an
extension of a partnership between Kroger and Ocado, a world leader
in technology for grocery e-commerce. In 2018, the companies
announced a collaboration to establish a delivery network that
combines artificial intelligence, advanced robotics, and automation
in a bold new way, bringing first-of-its-kind technology to
America.
The delivery network relies on highly automated fulfillment
centers. At the hub sites, more than 1,000 bots whizz around giant
3D grids, orchestrated by proprietary air-traffic control systems
in the unlicensed spectrum. The grid, known as The Hive, contains
totes with products and ready-to-deliver customer orders. As
customers' orders near delivery times, the bots retrieve products
from The Hive and are presented at pick stations for items to be
sorted for delivery, a process governed by algorithms that ensures
items are intelligently packed. For example, fragile items are
placed on top, bags are evenly weighted, and each order is
optimized to fit into the lowest number of bags, reducing plastic
use.
After being packed, groceries are loaded into a refrigerated
delivery van, which can store up to 20 orders. Powerful machine
learning algorithms optimize delivery routes, considering factors
like road conditions and optimal fuel efficiency. Drivers may
travel up to 90 miles with orders from facilities to make
deliveries.
Kroger currently operates customer fulfillment centers in
Monroe, OH, Groveland, FL, Forest Park, GA (Atlanta) and Dallas,
TX and Pleasant Prairie, WI
with additional customer fulfillment centers slated for
California, Frederick, MD, Phoenix, AZ, Romulus, MI (Detroit), Cleveland,
OH, Charlotte, NC as well
as South Florida and the
Northeast.
Media Assets
To download Kroger Delivery photography
and video, visit here.
About Kroger
At The Kroger Co. (NYSE: KR), we are
Fresh for Everyone™ and dedicated to our Purpose: To Feed the Human
Spirit®. We are, across our family of companies, nearly half a
million associates who serve over 11 million customers daily
through a seamless shopping experience under a variety of banner
names. We are committed to creating #ZeroHungerZeroWaste
communities by 2025. To learn more about us, visit our newsroom and
investor relations site.
About Ocado Group
Ocado Group is a UK based technology
company admitted to trading on the London Stock Exchange (Ticker
OCDO). It provides end-to-end online grocery fulfilment solutions
to some of the world's largest grocery retailers and holds a 50%
share of Ocado Retail Ltd in the UK in a Joint Venture with Marks
& Spencer. Ocado has spent two decades innovating for grocery
online, investing in a wide technology estate that includes
robotics, AI & machine learning, simulation, forecasting, and
edge intelligence.
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SOURCE The Kroger Co.