Kroger and Ocado to locate high-tech customer fulfilment centre in Michigan

Flexible distribution network with facilities that vary in design and size

The Kroger Co., America’s largest grocery retailer, and Ocado have announced Romulus, MI, US, as the latest location for a Customer Fulfilment Centre (CFC). The location confirms a previous announcement stating Kroger and Ocado would construct a CFC in the Great Lakes Region.

Kroger’s partnership with Ocado is an essential part of its evolving seamless ecosystem. In Michigan, it is engineering a smaller model for the region, leveraging advanced robotics technology and creative solutions to redefine the customer experience and respond to the growing demand for grocery eCommerce services.

Kroger has partnered with Ocado to accelerate its ability to provide customers with anything, anytime, anywhere. The CFC model – an automated warehouse facility with digital and robotic capabilities – will be used to serve customers across the region. Kroger is designing a flexible distribution network, combining disaggregated demand and the proximity of its stores and facilities that vary in design and size.

Grocery eCommerce has reached an inflection point in 2020, and the site illustrates the unique flexibility of Ocado’s technology, as it is able to deploy sites of different sizes in different regions, to maximise penetration across diverse markets.

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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.

Kroger’s decision to invest US$95.0 million and create 250 new jobs in Romulus further demonstrates that Wayne County is a leader in logistics and fulfilment industries. This new 12,540 m2 CFC will accelerate Kroger’s ability to expand its products to a larger footprint. This facility will create 250 new jobs, benefitting the City of Romulus/Aerotropolis region.

The facility will be located at 15675 Wahrman in Romulus. The CFC is expected to become operational 18 months after the site breaks ground and will support customers in several markets, including Michigan, Northern Ohio, and Indiana.

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