Kroger is expanding into the northeast market and will be adding customer fulfillment centers (CFCs) and boosting its rapid online deliveries, Chain Store Age reported.
Kroger will also be growing its CFCs in California and Florida, the report stated. The company has never expanded into the northeast before now.
The CFC model is being facilitated in partnership with Ocado, a U.K.-based online grocer, and it works with vertical integration, machine learning (ML) and robotics combined with quick, inexpensive delivery of fresh food, according to the report.
“The acceleration of Kroger Delivery continues with these new facilities and our continued focus on creating career opportunities and serving customers through interconnected, automated and innovative fulfillment models that cater to different and accretive grocery shopper missions in both new and existing geographies,” said Kroger Senior Vice President and Chief Supply Chain Officer Gabriel Arreaga in the report. “We have a pipeline of sites in development across the U.S., with several scheduled to open next year, and we’re excited to continue delivering the Kroger experience to more doorsteps.”
The centers use proprietary technology solutions focused on artificial intelligence (AI) as well as advanced robotics and automation to create better fulfillment, picking and delivery capabilities, the report stated.
In addition, CFCs have been made to work with the grocer’s flexible delivery network. That includes robots retrieving products from the CFC grid to be sorted for delivery through algorithms, according to the report.
Then, orders are loaded into a temperature-controlled company van, which can store up to 20 orders, the report stated.
Last month, Kroger teamed with Instacart on a partnership for instant delivery called Kroger Delivery Now, fulfilling online orders within 30 minutes. The program is available in the U.S. through both companies’ apps.
Read more: Kroger, Instacart Launch 30-Minute Convenience Delivery as Consumers Expect Speedy Fulfillment
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