Kroger confirms Dallas as next high-tech fulfillment center site
The Kroger Co. has found the location for the fifth of up to 20 planned automated warehouse facilities.
The supermarket giant and Ocado, one of the world’s largest dedicated online grocery retailers, will build what is known as a “customer fulfillment center” (CFC) in southern Dallas. The CFC model – an automated warehouse facility with digital and robotic capabilities, also known as a "shed,” will be replicated to support fast omnichannel delivery services across America.
The Dallas CFC will measure 350,000-sq.-ft. and is expected to create up to 400 new jobs. Kroger expects to break ground on the project in early 2020 and become operational in the next 24 months. Unconfirmed news reports in late August 2019 indicated Kroger would receive close to $6 million in incentives to build the facility in Dallas.
Kroger’s first two CFCs are being constructed in Monroe, Ohio and Groveland, Fla. Two additional sites have been named in Forest Park, Georgia, and at an undisclosed location in the mid-Atlantic region.
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.
Building new technologically advanced CFCs is part of a larger strategy, called “Restock Kroger,” which the company introduced in October 2017. In particular, the CFCs align with Restock Kroger priorities to fund technology and infrastructure upgrades, as well as to leverage robotics and artificial intelligence to transform the customer experience.