Kroger and Ocado Name Dallas Location of Fifth High-Tech Customer Fulfillment Center

New North Texas facility expected to create up to 400 new jobs

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Sep 12, 2019, 15:15 ET

DALLAS, Sept. 12, 2019 /PRNewswire/ -- The Kroger Co. (NYSE: KR), America's largest grocery retailer, and Ocado (LSE: OCDO), one of the world's largest dedicated online grocery retailers, today announced Dallas, Texas, as the fifth location for a Customer Fulfillment Center (CFC).

Kroger and Ocado's new customer fulfillment center – an automated warehouse facility with digital and robotic capabilities, also known as a “shed”. (PRNewsfoto/The Kroger Co.)

"Kroger is incredibly excited to construct one of our industry-leading Customer Fulfillment Centers in Dallas, Texas — one of the largest cities in America — in relationship with Ocado to bring fresh food to our customers faster than ever before," said Robert Clark, Kroger's senior vice president of supply chain, manufacturing and sourcing. "Through our strategic partnership, we are engineering a model for the region, leveraging advanced robotics technology and creative solutions to redefine the customer experience for our customers in North Texas and across America."

"I'm delighted to welcome Kroger's online grocery fulfillment facility to southern Dallas. The City's competitive incentive package for Kroger and Ocado Solutions will facilitate the creation of hundreds of well-paying jobs, engage our education system and provide a new option for our consumers. The deal shows that Dallas is truly a 21^st century city, and I anticipate the facility will be a boon to our residents," said Mayor Eric Johnson, City of Dallas.

"This announcement of Kroger's latest automated warehouse in Dallas marks another big moment in the U.S. grocery e-commerce story," said Luke Jensen, CEO of Ocado Solutions. "I'm delighted we can bring the cutting-edge innovation of the Ocado Smart Platform to Kroger's operations in such an important market.

"Kroger and Ocado's partnership is a game-changer in the fast-developing, global landscape for online grocery. As this site develops and goes live, it will be instrumental in delivering fantastic grocery experiences and exciting job opportunities to households across North Texas."

Kroger has committed to building up to 20 CFCs, powered by Ocado, to accelerate its ability to provide customers with anything, anytime, anywhere. The CFC model – an automated warehouse facility with digital and robotic capabilities, also known as a "shed" – will be replicated to serve customers across America. In June, Kroger broke ground on its first CFC in Monroe, OH and in July, broke ground on its second CFC in Groveland, FL. Kroger has also announced plans to build CFCs in Forest Park, GA and in the Mid-Atlantic region.

The Dallas CFC will measure 350,000 square feet and is expected to create up to 400 new jobs.

"The Dallas-Fort Worth area is one of the fastest-growing metropolitan areas in America and with this cutting-edge technology, Kroger is confident our partnership with Ocado will play an integral role in the continued commerce growth of this dynamic region," added Tom Schwilke, Kroger Dallas president. "This transformative fulfillment center will create local jobs and accelerate Kroger's ability to expand our products and services to a larger footprint, providing customers with anything, anytime, anywhere."

The Dallas CFC will be located at Interstate 20 at the corner of 4200 Cleveland Road and 4241 Telephone Road. The CFC is scheduled to break ground in early 2020 and become operational in the following 24 months.

To view video and photography of a CFC, visit here.

About The Kroger Co.
At The Kroger Co. (NYSE: KR), we are dedicated to our Purpose: To Feed the Human Spirit®. We are nearly half a million associates who serve over 11 million customers daily through a seamless digital shopping experience and 2,761 retail food stores under a variety of banner names, serving America through food inspiration and uplift, and creating #ZeroHungerZeroWaste communities by 2025. To learn more about us, visit our newsroom and investor relations site.

About Ocado Solutions
Ocado Solutions is responsible for Ocado's corporate partnerships, providing the Ocado Smart Platform (OSP) as a service to retailers around the world. OSP comprises access to Ocado's physical infrastructure solutions, running highly efficient warehouse operations for the single pick of products, together with the entire end-to-end proprietary software applications required to operate a world class online grocery business. It is underpinned by Ocado's proven expertise and experience as a dedicated online grocer in the UK.

SOURCE The Kroger Co.