Kroger partners with e-commerce company to build new fulfillment centers

Credit: DaytonDailyNews

Fast Facts about Kroger

Credit: DaytonDailyNews

The Kroger Co. and Ocado have signed a service agreement to build automated warehouse facilities in the U.S.

The U.K.-based online grocer Ocado said Kroger plans to order three customer fulfillment centers by the end of 2018. Kroger plans to order 20 fulfillment centers in the first three years of the agreement.

» TRENDING: 7 major moves Kroger made in 2018

“This is a significant step toward both solidifying our partnership with Ocado and redefining the Kroger customer experience,” said Alex Tosolini, senior vice president of business development of Kroger, in a statement. “The alliance will bring to the U.S. Ocado’s unparalleled innovation and technologies. This is exciting news and will help accelerate our vision to serve America through food inspiration and uplift.”

The locations of the fulfillment centers have not been announced by Kroger yet.

The cost for the first three customer fulfillment centers is estimated to cost £90 million, according to Ocado. Ocado will help Kroger augment its digital and robotics capabilities, making the grocer’s omnichannel more sophisticated.

Kroger also raised its investment in Ocado by 5 percent through a subscription rights agreement. That brings its stake in the U.K. company to over 6 percent.

FIVE FAST READS

• Target releases cheese-filled advent calendar for the holidays

• You won't believe the inside of this INCREDIBLE Oakwood house

• 5 things you need to know about Sears' bankruptcy

• Kroger launches wine delivery service

• Keith Urban makes wish come true for dying Ohio fan

In Other News