Ocado dramatically ramps up US expansion with 3 new robotic fulfillment centres

Ocado is dramatically ramping up its expansion in the US and plans to open three new automated customer fulfilment centres (CFCs).

The retail technology company is further expanding its partnership with Kroger, the largest grocer in the US, which it first partnered with in 2018 with plans to launch 20 CFCs across the country.

Ocado will now construct a 300,000sq ft automated fulfilment centre in the “West” of the country, although a specific location has not been specified.

Another 200,000sq ft branch will be constructed in the Pacific Northwest region, while a smaller 150,000sq ft centre is set to be built in the Great Lakes.

READ MORE: Ocado opens first fulfilment centre in North America despite struggles at home

These CFC’s, which use “advanced robotics technology and creative solutions to redefine the customer experience”, have fast become the brands key area of operations and expansion.

While Ocado started life as an online grocery retailer here in the UK, it has turned to selling its solutions to other retailers like Kroger, Sobey’s in Canada and Casino in France as its key source of revenue.

“Kroger and Ocado are building an ecommerce ecosystem across the U.S. that will deliver unrivalled online experiences to more customers, in more ways and in more markets,” Ocado Solutions chief executive Luke Jensen said.

“Spanning a range of automated CFC sizes, these three new sites will be key parts of this growing and flexible fulfillment network. Alongside the scale and wider benefits of larger CFCs, smaller format and mini CFCs will allow Kroger to reach more geographies with Ocado’s automation, while also catering to a wide range of options for delivery.”

Kroger says that the exact locations will soon be announced, and that the three new CFC’s will create over 1000 new jobs.

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