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JOHNSTOWN, Colo. — Kroger Co. last month opened its newest fulfillment “spoke” here, a facility that allows the grocery retailer to expand the reach of a customer fulfillment center (CFC) already operating in the Denver metro area and powered by technology from U.K.-based Ocado Group PLC.
The CFC, or hub, was launched last spring in Aurora, Colo., allowing for expansion of Kroger Delivery services to grocery shoppers at King Soopers and City Market stores in Colorado.
With the new spoke in Johnstown, the Aurora hub can take on additional online orders and expand deliveries by up to 200 miles, Kroger said.
“We look forward to connecting more customers in Northern Colorado to Kroger Delivery, which brings the freshest products, including Our Brands, directly to customers’ doors,” Rebekah Manis, senior director of Kroger delivery fulfillment centers, said in a September 21 announcing the opening of the approximately 57,000-square-foot spoke.
Kroger noted that customer orders are picked at the Aurora fulfillment center by associates who assemble the groceries and place them in climate-controlled vehicles to travel the roughly 50 miles to Johnstown.
Once the orders arrive at the spoke they are checked and loaded into a refrigerated delivery van, which can store up to 20 orders. Machine-learning algorithms optimize delivery routes, gauging factors such as road conditions and fuel efficiency, according to Kroger. Vans travel up to 90 minutes with orders from the hub and spoke facilities to make deliveries.
Kroger and Ocado began collaborating in 2018 to establish delivery capabilities that combine artificial intelligence, robotics and automation in a hub-and-spoke delivery network.
The delivery network relies on highly automated fulfillment centers. At the hub sites, Kroger said, more than 1,000 bots move around giant 3D grids, orchestrated by proprietary control systems.
The grid, known as The Hive, contains totes filled with products and ready-to-deliver customer orders.
Kroger Delivery boasts the highest in-stock levels, best on-time delivery, and one-of-a-kind, white-glove experience with industry-leading customer loyalty and satisfaction scores — driving value, convenience and more choices directly to customers, saving them time and money, Kroger said.
The Aurora hub was the eighth developed by Kroger and Ocado, ranging in size from 135,000 square feet to 375,000 square feet.
With the opening of the Johnstown site, in Larimer County, Kroger has 15 Ocado automated spokes, ranging in size from 40,000 square feet to 80,000 square feet.
“In Larimer County, we are always seeking opportunities that blend technology, sustainability and convenience to enhance the lives of our residents,” said Jody Shadduck-McNally, county commissioner and board chair. “Kroger’s commitment to advancing grocery e-commerce with this spoke facility is a testament to the innovative spirit that thrives in northern Colorado. The board of county commissioners is excited to partner with a brand that resonates with our community’s values.”
Other Kroger spokes are in Louisville and Independence, Ky.; San Antonio and Austin, Texas; Oklahoma City; Birmingham, Ala.; Nashville, Tenn.; Maywood, Ill.; Lockbourne, Ohio; Indianapolis; and four Florida locations, Miami, Tampa, Jacksonville and Opa-Locka.
