The first robotically-prepared online grocery order in The Kroger Co.’s 137-year history whizzed out the door of a newly constructed high-tech warehouse this week, marking the “soft opening” for the retailer’s multimillion e-commerce partnership with the British technology company Ocado.
Details of the order—what was in it and where it went—are being kept under wraps for now as the Cincinnati grocer prepares a formal presentation ahead of the facility’s grand opening early next month—but CEO Rodney McMullen mentioned the event while reviewing the chain’s fourth-quarter earnings results in a conference call this week.
There is much anticipation around—and even more riding on—Kroger’s debut of Ocado’s technology as the retailer moves to better execute how online orders are assembled, primarily but not entirely shifting from store-picked to automation. Its backers say Ocado, which is providing robotic warehouses and software to Kroger in an exclusive U.S. partnership, will provide Kroger with the lowest cost-to-serve and greatest capacity in the industry, critical components to meet its online ambitions profitably.
Source: Winsight Grocery Business