The Kroger Co. is rapidly extending the reach of fast online delivery via a network of automated fulfillment centers and smaller spoke locations.
America’s largest grocery retailer will add spoke facilities in Austin and San Antonio, Texas and Birmingham, Ala. As a continuation of Kroger’s entry into Florida in 2021 without physical stores, the new Texas and Alabama facilities will serve as last-mile cross-dock locations to help open new online shopping geographies for the company. They are all expected to open later in 2022, pending final lease negotiations, and will each employ up to 161 workers,
The 70,000-sq.-ft. spoke facility in northeast Austin will collaborate with a high-tech customer fulfillment center (CFC) hub in Dallas to fulfill online orders of fresh food. Introduced in partnership with U.K.-based online grocer Ocado in May 2018, the CFC model combines vertical integration, machine learning, and robotics with affordable and fast delivery service for fresh food. CFC facilities leverage proprietary technology solutions focused on artificial intelligence (AI) and advanced robotics and automation to create more seamless and efficient fulfillment, picking and delivery capabilities for enhanced digital commerce capabilities across the U.S.Chain Store Age