The Kroger Co. will expand its delivery through the addition of a spoke facility in Oklahoma City powered by the Ocado Group. As a continuation of Kroger’s successful entry into Florida in 2021, Oklahoma will serve as another new geography for the company, bringing innovation and modern e-commerce to the area, extending the grocer’s reach and ability to provide its customers anything, anytime, anywhere.
“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, Kroger’s 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.”
The 50,000-square-foot spoke facility will collaborate with the hub in Dallas, serving as a last-mile cross-dock location that efficiently expands Kroger’s grocery delivery services and extends its reach to customers up to 200 miles from the hub. The facility is expected to become operational later this year and will employ up to 191 full-time associates.
Kroger Chairman and CEO 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.” Through the delivery network, the company now serves customers in Florida, as an example, without traditional brick-and-mortar stores.
The delivery network relies on highly automated fulfillment centers. At the hub sites, more than 1,000 bots whizz around giant 3D grids, orchestrated by proprietary air-traffic control systems in the unlicensed spectrum. The grid, known as The Hive, contains totes with products and ready-to-deliver customer orders.