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10/14/2021

Kroger Opens New Fulfillment Centers to Keep Up with Delivery

Supermarket giant Kroger is expanding delivery in existing markets and entering new delivery markets thanks to investments in its fulfillment centers.
Kroger delivery truck

New fulfillment centers, powered by online grocery services company the Ocado Group, have enabled Kroger to enter the Northeast for the first time, with the ability to provide same-day and next-day delivery through a customer fulfillment center.

In California, Kroger is boosting its capacity through the addition to two fulfillment centers. The medium- and smaller-sized facilities will meet the need for same-day and next-day grocery delivery demand, Kroger stated. 

"Kroger Delivery is a thriving part of our dynamic ecosystem and is transforming grocery e-commerce and meeting a range of customer needs through the introduction of first-of-its-kind technology in the U.S. developed by Ocado," said Rodney McMullen, Kroger's chairman and CEO. "Kroger's growing seamless ecosystem continues to scale, and we're committed to doubling both our digital sales and profitability rate by the end of 2023, and Kroger Delivery will help us reach this target.”

The retailer launched delivery earlier this year in central Florida and has seen its operations in the region ramp up quickly. Kroger will add two smaller-sized fulfillment centers in south Florida to enter that region and offer delivery. Kroger already has a fulfillment center in Groveland as well as "spoke" sites in Jacksonville and Tampa.

"The acceleration of Kroger Delivery continues with these new facilities and our continued focus on creating career opportunities and serving customers through interconnected, automated and innovative fulfillment models that cater to different and accretive grocery shopper missions in both new and existing geographies," said Gabriel Arreaga, Kroger's senior vice president and chief supply chain officer. "We have a pipeline of sites in development across the U.S., with several scheduled to open next year, and we're excited to continue delivering the Kroger experience to more doorsteps."

In addition to the newly announced five facilities, Kroger Delivery is slated to open previously announced sites in Dallas; Forest Park, Georgia (Atlanta); Frederick, Maryland; Phoenix; Pleasant Prairie, Wisconsin; Romulus, Michigan (Detroit); and sites in the South, West and Pacific Northwest.