Kroger and Ocado to Operate High-Tech Customer Fulfillment Center in Frederick, Maryland

Facility will support Kroger's e-commerce initiatives in Washington D.C., Baltimore and Philadelphia

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Jan 23, 2020, 09:00 ET

FREDERICK, Md., Jan. 23, 2020 /PRNewswire/ -- The Kroger Co. (NYSE: KR), America's largest grocery retailer, and Ocado (LSE: OCDO), a world leader in technology for grocery ecommerce, today announced Frederick, MD, as the latest 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 Maryland 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."

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.

"We are excited to bring Kroger and Ocado's latest automated warehouse to Frederick. This site will be key to delivering amazing grocery experiences to households across Maryland, Pennsylvania and the District of Columbia. It will also create fantastic job opportunities for engineers looking to work alongside state-of-the-art robotics and automation," said Luke Jensen, CEO of Ocado Solutions. "The warehouse will be a key component of the seamless fulfilment ecosystem that Kroger is developing for customers across the United States. 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."

"We are thrilled that these two respected companies have chosen Maryland as the location for a new high-tech, innovative Mid-Atlantic hub," said Governor Larry Hogan. "This is a big win for Frederick County and yet another shining example that Maryland truly is open for business."

"This is excellent news for Frederick County," said Frederick County Executive Jan Gardner. "We are thrilled to welcome Kroger and Ocado. Their high-tech innovative business will bring life to a vacant distribution facility, will add hundreds of new jobs, and make an investment of tens of millions of dollars in our community. County staff worked closely with the businesses for many months, facilitating a smooth process for permits, water and sewer, and other details. We were pleased to fast-track the project and want Kroger and Ocado to know our support will be ongoing. We are pleased to welcome them to our growing e-commerce business community. Frederick County is a great place to do business."

This new 350,000-square-foot CFC will accelerate Kroger's ability to expand its products to a larger footprint. Upon completion, 400 new jobs will be created with up to 100 more added later as the service area of this facility expands.

The facility will be located at 7106 Geoffrey Way in Frederick, MD. The site confirms an earlier announcement identifying the Mid-Atlantic region as one of the first shed locations. It is expected to become operational 24 months after the site breaks ground and will service several markets, including Washington D.C., Baltimore and Philadelphia.

About The Kroger Co.
At The Kroger Co. (NYSE: KR), we are Fresh for Everyone™ and dedicated to our Purpose: To Feed the Human Spirit®. We are, across our family of companies, nearly half a million associates who serve over 11 million customers daily through a seamless shopping experience under a variety of banner names. We are committed to 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.