Kroger grocery store sign. Credit: Getty Royalty Free Kroger and Ocado announced they would build their first automated robot warehouse in Monroe, Ohio. The $55 million investment will bring 410 new jobs to Monroe, a suburb north of Cincinnati. Kroger and Ocado will use the warehouse as a customer fulfillment center (CFC) and plan to open 20 similar facilities. Kroger and online grocery retailer Ocado made their exclusive partnership public in May 2018. Now, they have identified the location of their first automated robot warehouse, which will be called the shed. Together, they plan to build 20 sheds or automated customer fulfillment centers, throughout the U.S. as the program expands during the next three years. By partnering with Ocado, Kroger can take advantage of the U.K. retailer's advanced warehouse technology and robotics. Ocado already has experience building huge, automated warehouses staffed with robots, which allow for fast deliveries. In one of its warehouses located in Andover, U.K., thousands of robots pack grocery orders and process 65,000 orders per week. Thanks to an air traffic control system, the robots move along a grid, communicate with each other and use charging bays to keep their batteries full. VIDEO Alex Tosolini, Kroger's Senior Vice President of New Business Development, shared, "Ocado is a U.K.-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. It's all about building a seamless supply chain to provide our customers with an amazing shopping experience." For Ocado, Kroger is one of many grocery retailers that is interested in its technology. The U.K. company has previously licensed its tech to retailers in Sweden, France and Canada. However, the exclusive partnership it has with Kroger in the U.S. should prevent other American grocery chains from taking advantage of it. As Kroger competes with Amazon, Walmart and other retailers, delivery services and automation will be at the forefront. For example, Amazon already uses 100,000 robots, which it calls Amazon Robotics drive units, in 175 fulfillment centers. Likewise, Walmart plans to use automated robotic carts for online grocery orders. Although the reliance on automation and robots is increasing, for now, humans are still part of the customer fulfillment centers. Ocado uses people to help pick items for customers' orders, Amazon robots work alongside human employees, and Walmart plans to have people assemble the final orders. The goal is to shift boring, repetitive tasks to the robots.
US retailer Kroger is teaming up with British online supermarket Ocado to build an automated robot warehouse in Monroe, Ohio. The $55m project will see 410 jobs created at the customer fulfilment centre in the suburb of France. The two companies plan to build a total of 20 such centres across the US in the next three years. Ocado has previously licensed its technology to retailers in Cincinnati, Sweden and Canada, although its exclusive deal with Kroger means other US grocery groups are unlikely to benefit.