Customer Fulfillment Center to support grocery delivery to multiple geographies including Orlando, Tampa and Jacksonville
GROVELAND, Florida, June 9, 2021 / PRNewswire / – The Kroger Co. (NYSE: KR), America’s largest food retailer, today announced the opening of the Customer Fulfillment Center (CFC) in Groveland, Florida powered by Ocado Group (LSE: OCDO), a global technology leader for grocery e-commerce. This marks Kroger’s entry into the Florida market with an e-commerce delivery service that combines vertical integration, machine learning and robotics with affordable, user-friendly and fast delivery of groceries and fresh food.
“Kroger’s delivery network combines the efficiency of technology with the experience of our associates to deliver fresh and affordable food, along with a consistent and rewarding customer experience,” said Gabriel Arréaga, head of Kroger’s supply chain. “We are proud to launch Kroger Delivery in Florida, a new geography for Kroger and a defining moment in our history to continue to build on our success as one of the leading retailers and e-commerce companies in the United States. “
“Groveland is delighted to welcome Kroger to our family! “said Evelyne wilson, mayor of Groveland. “The combination of their contributions to the community, coupled with their corporate culture and values, make them an ideal partner with our charming city. I look forward to a long and prosperous relationship.
“Kroger is uniquely positioned to transform grocery e-commerce into Florida because of our differentiated offering which brings high quality fresh groceries directly to our customers’ doorsteps. The service offers fresh food, adult beverages and personal care products, affordable prices and promotions, as well as a premier fuel rewards loyalty program, ”said Bill bennett, vice president of e-commerce at Kroger. “This innovative, customer-centric offering is brought to you by our professionally trained and friendly Kroger Delivery associates, providing our customers with anything, anytime, anywhere and expanding our reach and products to new areas. geographic. “
“We are delighted that Kroger has chosen the Tampa Bay and Hillsborough County regions to expand the reach of the company’s e-commerce in the Florida State,” mentionned Pat kemp, president of the Hillsborough County Council of County Commissioners. “Kroger will be an integral part of our community as they expand and grow here. We look forward to providing them with the partnership and supportive environment necessary to develop a talented workforce and successful business operations.
“Every citizen of Jacksonville should have access to affordable, healthy and fresh food, ”said Lenny curry, mayor of Jacksonville. “We welcome Kroger to our community and are very encouraged that this delivery service will fill a significant gap for people who do not have easy access to groceries.”
Kroger delivery customer experience
After placing an order through Kroger.com or the Kroger app, customers in regions where a CFC is located have their groceries delivered by an experienced Kroger Delivery associate in a temperature-controlled van. The Associate provides industry-leading customer service, including ensuring order freshness and satisfaction, managing order changes, and educating customers about the benefits of loyalty membership, such as fuel points earned through to a partnership with Shell® and digital savings coupons.
As part of Kroger’s commitment to providing a differentiated and affordable grocery delivery experience to customers, Kroger Delivery will offer variable delivery charges that do not require customers to tip and are influenced by a number factors such as customer loyalty, popularity of the delivery window, route optimization and order times. The variable delivery charges will allow Kroger Delivery to offer additional discounted options where it has flexibility, creating a personalized offering and delivering value to customers in an important way.
Kroger delivery operations
In May 2018, Kroger and Ocado have formed an exclusive partnership to bring to the United States for the first time proprietary technology solutions focused on artificial intelligence, advanced robotics and automation, and creative solutions to build execution capabilities and efficient delivery.
The Groveland CFC measures 375,000 square feet, transports thousands of popular groceries and is one of the models designed for the Kroger flexible delivery network, which will also include smaller automated facilities and shelf locations. CFC can process thousands of orders per day. The Groveland CFC and spoke in Tampa are now open, with the Jacksonville talked about is expected to open this month. The Groveland CFC joins the Monroe, Ohio CFC which opened earlier this spring.
Kroger Delivery is a vertically integrated network, allowing coverage up to 90 miles from the hub location in Groveland and much more territory when shelf locations, such as Tampa and Jacksonville, are integrated. In these highly automated Customer Fulfillment Centers, more than 1,000 bots revolve around giant 3D grids, orchestrated by proprietary air traffic control systems in the unlicensed spectrum. The grid, known as The Hive, contains bins with products and customer orders ready for delivery.
As customer orders approach their delivery time, bots pick up products from The Hive which are presented to stations for items to be sorted for delivery, a process driven by algorithms that ensure items are sorted intelligently. For example, fragile items are placed on top, bags are weighed evenly, and each order is optimized to fit in as few bags as possible, reducing plastic use.
Once completed, orders are loaded into a temperature-controlled Kroger delivery van, which can store up to 20 orders. Powerful machine learning algorithms dynamically optimize delivery routes, taking into account factors such as road conditions and optimum fuel efficiency.
“We are proud to help bring Kroger to Florida with state-of-the-art Ocado technology, ”said Luc Jensen, CEO of Ocado Solutions. “The unique partnership of Kroger and Ocado opens up new online possibilities for customers of American grocery stores and we look forward to seeing households through Florida to experience incredible levels of service and freshness online with Kroger Delivery. “
“We are delighted to bring Kroger’s exclusive brands including Simple Truth®, the largest private natural and organic label in the country, and Private Selection® at Florida,” mentionned Brandon mc burney, Kroger’s Managing Director of the Groveland Customer Fulfillment Center. “Kroger Delivery reliably delivers fresh food in a practical and innovative way. Kroger Delivery will introduce Kroger to new audiences, accelerate our e-commerce capabilities, focus on exceptional customer experiences, and create hundreds of new career opportunities.
Experience as a Kroger delivery partner
Kroger’s supply chain, tech and digital, data and analytics, human resources, operations and merchandising talent teams come together to design Kroger’s delivery network. In each CFC, on-site employees take charge of delivery operations and help process, pack and load orders. Groveland’s CFC employs nearly 400 associates, whose roles focus on customer service and engagement, engineering, operations, inventory and quality management, and transportation. The satellite sites will each employ nearly 180 associates. Earlier this week, the Kroger family of companies announced that it hiring for 10,000 open positions. To see available careers, visit Jobs.Kroger.com.
To download Kroger Delivery video and photography, please visit here.
At Kroger Co. (NYSE: KR), we’re dedicated to our goal: Feeding the Human Spirit ™. We are, in our family of companies, nearly half a million associates who serve over nine million customers daily through a seamless digital shopping experience and 2,800 retail food stores under a variety of banner names, serve America through the inspiration and elevation of food, and create #HungerZeroZeroWaste communities by 2025. To learn more about us, visit our writing and investor relations to place.
About the 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 processing solutions to some of the world’s largest grocery retailers and owns a 50% stake in Ocado Retail Ltd in the UK in a joint venture with Marks & Spencer. Ocado has spent two decades innovating for online grocery shopping, investing in a broad area of technology that includes robotics, AI and machine learning, simulation, forecasting, and cutting-edge intelligence.
Safe Harbor language
This press release contains certain statements that constitute “forward-looking statements” regarding the operations of the Company. These statements are based on the assumptions and beliefs of management in light of the information currently available to it. These statements are indicated by words or expressions such as “achieve”, “believe”, “contemplate”, “continue”, “achieve”, “wait”, “future”, “direction”, “strategy”, “target” “,” Trends “and” will “. Various uncertainties and other factors could cause actual results to differ materially from those contained in forward-looking statements. These include the specific risk factors identified in the “Risk Factors” section of our annual report on Form 10-K for our last fiscal year and any subsequent filings, as well as our performance, including our ability to successfully execute our e-commerce strategy. Kroger assumes no obligation to update the information contained in this document. Please refer to the reports and documents filed by Kroger with the Securities and Exchange Commission for a further discussion of these risks and uncertainties.
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SOURCE The Kroger Company.