The Kroger Co. is bringing its automated warehouse facility to the Mid-Atlantic region.
The supermarket giant and Ocado, one of the world’s largest dedicated online grocery retailers, will build an automated “customer fulfillment center” in Frederick, Md. The 350,000-sq.-ft. center – an automated warehouse facility with digital and robotic capabilities – will service several markets, including Washington D.C., Baltimore and Philadelphia. and accelerate Kroger's ability to expand its products to a larger footprint.
The Frederick site is the sixth confirmed location of up to 20 planned automated warehouse facilities Kroger and Ocado plan to build. Previously announced locations include Dallas; Pleasant Prairie, Wis.; Monroe, Ohio; Groveland, Fla., and Forest Park, Georgia,
"Kroger is incredibly excited to construct one of our industry-leading Customer Fulfillment Centers in Maryland in relationship with Ocado to bring fresh food to our customers faster than ever before," said Robert Clark, Kroger's senior VP of supply chain, manufacturing and sourcing. "Through our strategic partnership, we are engineering a model for the region, leveraging advanced robotics technology and creative solutions to redefine the customer experience."
Kroger and Ocado entered into an exclusive partnership in May 2018, in a deal that enables Kroger to leverage Ocado’s smart platform that supports online ordering, automated fulfillment and home delivery capabilities. The facility in Frederick is expected to become operational 24 months after the site breaks ground.
"The warehouse will be a key component of the seamless fulfilment ecosystem that Kroger is developing for customers across the United States. said Luke Jensen, CEO of Ocado Solutions. “Ocado's proven technology will allow Kroger to achieve the lowest cost-to-serve in the market, combined with the best freshness, accuracy and service."