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Report: Kroger gets approval for high-tech fulfillment center in Dallas

8/29/2019
The Kroger Co. is reportedly receiving almost $6 million in incentives to build an automated distribution facility in south Dallas.

According to The Dallas Morning News, the Dallas City Council has unanimously approved $5.7 million in property, business tax abatements and bond funds to build a 335,000-sq.-ft. facility on a 55-acre parcel of land in the city. The facility will be one of 20 “customer fulfillment centers” (CFCs) Kroger plans to build around the U.S. with Ocado, one of the world’s largest dedicated online grocery retailers.

Kroger’s first two CFCs – an automated warehouse facility with digital and robotic capabilities, also known as a shed – are being constructed in Monroe, Ohio and Groveland, Fla. and will continue in cities across the U.S. Two additional sites have been named in Forest Park, Georgia, and at an undisclosed location in the mid-Atlantic region.

The Dallas facility is reportedly expected to open in 2021 and employ about 400 people.

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.

To read the full Dallas Morning News article, click here.
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