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Dallas home for fifth Kroger and Ocado customer fulfillment center
North Texas facility will measure 353,000 square feet
The Kroger Co. (NYSE: KR) and Ocado (LSE: OCDO) are placing their latest and fifth Customer Fulfillment Center (CFC) in Dallas, Texas.
The Dallas CFC will measure 350,000 square feet and is expected to create up to 400 new jobs.
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.
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.
Kroger has committed to building up to 20 CFCs, powered by Ocado, to accelerate its e-commerce capabilities. The CFC is an automated warehouse facility with digital and robotic capabilities.
"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 21st 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."
"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."
To view video and photography of a CFC, visit here.