Kroger Introduces New Customer Fulfillment Center in Cleveland Region; Rodney McMullen, Gabriel Arreaga, and Luke Jensen Discuss
CINCINNATI, OH - With one facility already up and running in Monroe, Ohio, The Kroger Co. is now further bolstering its market presence with the addition of a new Customer Fulfillment Center (CFC) in Cleveland. The facility, powered by the Ocado Group, will expand Kroger’s delivery capabilities throughout the area.
Chairman and Chief Executive Officer Rodney McMullen said Kroger Delivery “underpins the permanent shift in grocery consumer behavior and elevates our position as one of America’s leading e-commerce companies.”
The CFC will measure 270,000 square feet and is expected to create up to 400 new jobs, according to a press release. It is anticipated that the facility will be operational 24 months after the site breaks ground and will service areas in northeastern Ohio and Pennsylvania. The retailer also formed partnerships with JobsOhio and Team NEO to deliver this project.
Gabriel Arreaga, Kroger’s Senior Vice President and Chief Supply Chain Officer, also commented.
“Kroger is incredibly excited to expand our delivery business in our home state and provide northeast Ohioans access to thousands of fresh and popular products, including our industry-leading Private Selection™ and Simple Truth™ brands, through our Customer Fulfillment Center,” said Arreaga. “The Cleveland region facility is an accelerant to our strategy to achieve the doubling of our digital sales and profitability rate by the end of 2023, and we’re eager to provide a rewarding experience for our new customers in northeastern Ohio and Pennsylvania and create new jobs for individuals passionate about technology, engineering, operations, logistics and transportation, inventory and quality management, and customer service and engagement.”
The expansion in the Cleveland region represents an extension of a partnership between Kroger and Ocado. In 2018, the companies announced a collaboration to establish a delivery network that combines artificial intelligence, advanced robotics, and automation in a bold new way, bringing first-of-its-kind technology to America.
“We are excited to bring Kroger and Ocado’s second automated warehouse to Ohio. As this site develops and goes live, it will be instrumental in delivering fantastic grocery experiences and exciting job opportunities to households across Cleveland, Pennsylvania, and beyond,” said Luke Jensen, Chief Executive Officer of Ocado Solutions. “Today’s announcement marks another milestone to developing Kroger’s seamless fulfillment ecosystem across the United States. Ocado’s proven technology will allow Kroger to achieve the lowest cost-to-serve in the market, combined with the best freshness, accuracy, and service in grocery delivery.”
For more information on the expansion and Kroger’s delivery service, please check out the press release here.
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