America’s largest grocery retailer to enter Northeast and expand in California and Florida
CINCINNATI, Oct. 12, 2021 /PRNewswire/ — The Kroger Co. (NYSE: KR), America’s largest grocery retailer, today announced it will offer more customers Kroger Delivery through the addition of new Kroger fulfillment centers powered by the Ocado Group, combining vertical integration, machine learning, and robotics to provide an affordable, friendly, and fast fresh food delivery service.
“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.
” We are excited about the momentum that we’re experiencing through Kroger Delivery and our partnership With Ocado. We will strategically leverage our assets to expand operations in existing areas as well as explore new geographies along the East Coast that leverage facilities of a growing variety of sizes.
. The organization will provide more information about its plans for the Northeast and California in the coming months, including job creation, customer coverage areas and facility sizes. However, today’s highlight is the following.
Kroger will enter the Northeast for the first time, offering Kroger Delivery enabled by a customer fulfillment center (CFC). This facility will be able to meet demand for next-day and same-day grocery delivery.
Kroger will expand its existing operations and boost capacity in California with the addition of two CFCs. The facilities of medium and small size will be able to meet next-day and same-day grocery delivery needs.
Kroger Delivery launched in Central Florida earlier this year, and the operation has ramped up faster than expected, unlocking additional ways of executing and operating and resulting in high customer repeat rates and net promoter scores.
. Kroger will expand into South Florida to continue its momentum and open two smaller fulfillment centers. These facilities will be added to the existing CFC in Groveland and “spoke” locations in Jacksonville, Tampa. It will also mark the introduction of two automated local fulfillment centers with Ocado, enabling Kroger Delivery to serve customers as fast as 30 minutes with a selection of 10,000 fresh food items and essentials, and to deliver same-day and next-day orders with 35,000 items. The acceleration of Kroger Delivery continues, with these new facilities, and our continued focus to create career opportunities and serve customers through interconnected automated fulfillment models that serve different and accretive grocery shoppers in both new and established geographies.” Gabriel Arreaga is Kroger’s senior vice-president and chief supply chain officer. We have several new sites under development in the U.S. and more are expected to open by next year. We’re thrilled to deliver the Kroger experience to even more customers.
” I am thrilled that Ocado’s leading technology is being brought to Kroger customers in the U.S., said Luke Jensen CEO of Ocado Solutions. “The Northeast is a new territory for Kroger and we are excited to join it with them. Our partnership is also changing the U.S. grocery shopping online landscape, from coast to coast, by adding fulfillment centers in Southern California.
Kroger will also be leveraging Ocado’s full range of fulfillment capabilities to address the increasing number of customer demands and wants. Kroger customers will be able to take advantage of the flexibility and breadth of the Kroger offering by today’s announcements of an additional CFC in Florida, and of our new ‘Zoom’ micro fulfillment site. The existing CFC in Groveland will be able to serve as a major supply point for the new Florida locations. “
.Kroger Delivery operates CFCs at Groveland, FL, and Monroe, OH. In addition to the five new facilities, Kroger Delivery will open previously announced locations in Dallas, TX, Forest Park, GA (Atlanta); Frederick; MD; Phoenix; AZ; Pleasant Prairie; WI; Romulus (MI (Detroit); as well as sites throughout the South, West, and Pacific Northwest. Kroger will be announcing new facilities and plans as the Kroger Delivery network grows.
To download Kroger Delivery photography and video, visit here.
At The Kroger Co. (NYSE: KR), we are Fresh for Everyone(tm) and dedicated to our Purpose: To Feed the Human Spirit(r). 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 been innovating online grocery shopping for over two decades, investing in many technologies such as robotics, AI and machine learning, forecasting, edge intelligence, and simulation.
*This press release contains forward-looking statements about the company’s future performance. These statements are based upon management’s beliefs and assumptions in light of current information. These statements can be identified by phrases or words such as “committed”, “feel,”” “will,” and “continue”. Actual results could differ from the ones in forward-looking statements due to various uncertainties. These include the specific risk factors identified in “Risk Factors” in our annual report on Form 10-K for our last fiscal year and any subsequent filings, as well as the following:
Kroger’s ability to achieve sales, earnings, and incremental FIFO operating profit goals may be affected by: COVID-19 pandemic related factors, risks and challenges, including among others, the length of time that the pandemic continues, new variants of the virus, lack of access to vaccines for certain populations and the extent of vaccine aversion, as well as the effect of emerging targeted vaccine mandates and booster vaccines, the potential for additional future spikes in infection and illness rates including breakthrough infections among the fully vaccinated, and the corresponding potential for disruptions in workforce availability and customer shopping patterns, re-imposed restrictions as a result of resurgence and the corresponding future easing of restrictions, and interruptions in domestic and global supply chains or capacity constraints; the pace of recovery when the pandemic subsides; labor negotiations or disputes; changes in the unemployment rate; pressures in the labor market; changes in government-funded benefit programs; changes in the types and numbers of businesses that compete with Kroger; pricing and promotional activities of existing and new competitors, including non-traditional competitors, and the aggressiveness of that competition; Kroger’s response to these actions; the state of the economy, including interest rates, the inflationary and deflationary trends in certain commodities; changes in tariffs; the effect that fuel costs have on consumer spending; volatility of fuel margins; manufacturing commodity costs; diesel fuel costs related to Kroger’s logistics operations; trends in consumer spending; the extent to which Kroger’s customers exercise caution in their purchasing in response to economic conditions; the uncertainty of economic growth or recession; changes in inflation or deflation in product and operating costs; stock repurchases; Kroger’s ability to retain pharmacy sales from third party payors; consolidation in the healthcare industry, including pharmacy benefit managers; Kroger’s ability to negotiate modifications to multi-employer pension plans; natural disasters or adverse weather conditions; the effect of public health crises or other significant catastrophic events, including the coronavirus; the potential costs and risks associated with potential cyber-attacks or data security breaches; the success of Kroger’s future growth plans; the ability to execute our growth strategy and value creation model, including continued cost savings, growth of our alternative profit businesses, and widening and deepening our strategic moats of fresh, our brands, personalization, and seamless; and the successful integration of merged companies and new partnerships. These factors may affect our ability to reach these goals. The ability to generate cash flow may affect our ability to execute our financial plan.
.Kroger does not assume any obligation to update this information unless required by law. For further information on these risks and uncertainties, please refer to Kroger’s filings with Securities and Exchange Commission.
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SOURCE The Kroger Co.
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