A robotic customer fulfillment center run by Ocado, similar to the one being constructed near Cincinnati, OH for Kroger Co.

CINCINNATI, OH—The Kroger Co., America's largest grocery retailer, and Ocado, one of the world's largest dedicated online grocery retailers, will build a $55 million customer fulfillment center in the Cincinnati region.

“Kroger is joining with the best partners in the world to co-innovate and leverage technology to redefine the customer experience,” says Rodney McMullen, Kroger's chairman and CEO. “We are incredibly excited to partner with Ocado to transform the industry and deliver on our Restock Kroger vision to serve America through food inspiration and uplift. This Kroger shed, powered by Ocado, will accelerate our ability to provide customers with anything, anytime and anywhere.”

Kroger's first CFC—a 335,000 square-foot automated warehouse facility with digital and robotic capabilities, also known as a “shed”—will be constructed in Monroe, OH, a suburb north of Cincinnati, subject to securing state and local incentives. The CFC model will be replicated to serve customers across America. Kroger is planning to open 20 CFCs to support its seamless vision. The CFC will introduce innovative robotics technology, allowing for next-generation automated storage and retrieval.

“Kroger is committed to helping position Cincinnati and Ohio as a destination for digital and technology talent. We are proud to choose our headquarters state of Ohio as the first location for this first-of-its-kind customer fulfillment center in the US,” says McMullen. “We thank Governor John Kasich, JobsOhio, and REDI for enabling Kroger's $55 million capital investment and creation of 410 new Ohio jobs.”

“We and our partners at REDI Cincinnati are excited Kroger has chosen Ohio for its first customer fulfilment center in the United States,” says Dana Saucier, JobsOhio vice president and head of economic development. “This cutting-edge facility will bring 410 jobs to Cincinnati and serve as a national model as Kroger continues its focus on the evolving preferences of its customers throughout the country.”

“With its latest investment in the region, Kroger continues to be both an innovative leader in consumer goods and an essential part of Greater Cincinnati's growth,” says Kimm Lauterbach, president and CEO of REDI Cincinnati. “REDI Cincinnati is excited to support Kroger's growth in Monroe.”

Earlier this year, Kroger and Ocado announced an alliance to bring to the U.S. Ocado's unparalleled innovation and technologies. In October, the companies signed a master services agreement to further solidify their partnership.

“Ocado is a UK-based company with global ties and advanced digital and robotic capabilities. Working together, we will develop the strongest possible supply network to support a seamless customer experience that can serve every person in America,” says Alex Tosolini, Kroger's senior vice president of new business development. “It's all about building a seamless supply chain to provide our customers with an amazing shopping experience.”

“We are delighted to be supporting Kroger in its efforts to transform the service and value it brings to US customers,” says Luke Jensen, CEO of Ocado Solutions. “Today's announcement of the first CFC is an important first step to making that happen. It's all the more exciting that this CFC will serve Kroger's hometown of Cincinnati.”