Kroger Expands Footprint With New Facility in Oklahoma; Gabriel Arreaga Shares
OKLAHOMA CITY, OK - After recently unveiling a new customer fulfillment center in Georgia, Kroger is tactically strengthening its hold in Oklahoma with a new spoke facility in Oklahoma City. Powered by the Ocado Group, this new operation extends the retailer's reach into a new area, bringing further innovation and e-commerce options to the area.
"We're excited to extend the Kroger fulfillment network to Oklahoma City, a new geography for our operation and an integral part of our strategy to achieve the doubling of our digital sales and profitability rate by the end of 2023," said Gabriel Arreaga, Senior Vice President and Chief Supply Chain Officer. "This grocery delivery service is an innovative addition to the expanding digital shopping experience available to our customers. The spoke facility will provide unmatched, impeccable customer service and improve direct access to fresh food in areas eager for the variety and value offered by Kroger."
Located on 8801 North 1-35 Service Road, the new 50,000-square-foot spoke facility will collaborate with the company's hub in Dallas, Texas, and serve as a last-mile cross-dock location. As noted in a release, this will expand Kroger's delivery services and extend its reach an additional 200 miles from the hub.
This new facility is expected to become operational later in 2022 and upon opening will employ up to 191 full-time associates.
In addition to extending the retailer's footprint, the opening of the spoke facility represents an expansion of the partnership between Kroger and Ocado, a collaboration that began in 2018. Since then, the companies have worked together to establish and build on a delivery network that combines artificial intelligence, advanced robotics, and automation.
Through this successful partnership and delivery network, Kroger is able to serve customers in Florida and other regions without traditional brick-and-mortar stores.
"We continue to be pleased with the rollout of our customer fulfillment centers in Groveland, Florida, and Monroe, Ohio, which are both exceeding internal expectations, and our most recent facility opening in Forest Park, Georgia," continued Arreaga. "We've experienced incredible Net Promoter Scores™, and our customers tell us they love our friendly, professionally trained drivers and their refrigerated delivery vans that bring the freshest food directly to their doorsteps. We're eager to continue expanding our fulfillment network and entering into both existing and new geographies through hub and spoke facilities."
Kroger debuted its first customer fulfillment center in Monroe in April 2021, followed by centers in Groveland and Forest Park. The company's Dallas fulfillment center is slated to open this spring with additional customer fulfillment centers planned for California; Frederick, Maryland; Phoenix, Arizona; Pleasant Prairie, Wisconsin; Romulus, Michigan; as well as South Florida and the Northeast and West.
To read more about Kroger Delivery and the company's fulfillment centers, click here.
With a strategic expansion plan already in place, what will be the next market Kroger enters? Stick with us at AndNowUKnow to find out.