Kroger Delivery Expands in Northern Colorado

Rhea-AI Summary

Kroger opens new spoke in Johnstown, CO to provide delivery services to Northern Colorado area

Positive

• New facility brings Kroger's fresh products to customers' doorsteps, including cost-saving offerings
• Expansion represents an extension of collaboration with Ocado Group, bringing advanced technology to America

Negative

• None.

Retailer opens new spoke serving Larimer County, Johnstown, Northern Colorado area

JOHNSTOWN, Colo., Sept. 21, 2023 /PRNewswire/ -- The Kroger Co. (NYSE: KR) today announced the official opening of a new spoke in Johnstown, Colorado. The new facility will bring Kroger's vast selection of fresh items right to customers' doorsteps, including unique Our Brands products and favorite national brands, in addition to cost-saving offerings, making products even more affordable for Northern Colorado families.   

"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," said Rebekah Manis, Senior Director, Kroger Delivery Fulfillment Centers. "Kroger Delivery enables us to meet our customers' unique needs and deliver value, like exceptional friendly service from our best-in-class uniformed drivers, and a personalized shopping experience with zero-compromise on convenience, value and selection."

The approximately 57,000-square-foot spoke facility is located in Johnstown, Larimer County, Colorado and will work in conjunction with the Aurora, Colorado fulfillment center. All orders are picked at the products' peak freshness within the Aurora facility. Associates carefully assemble orders and place them in climate-controlled vehicles to travel to Johnstown. Once the orders arrive, they are checked and placed on refrigerated delivery trucks that deliver directly to customers' doors, ensuring cold and frozen products remain at the perfect temperature from the supplier to the customer's refrigerator. The facility currently employs nearly 70 associates. Learn more about pursuing a career at Kroger here.

"We couldn't be happier having Kroger establish a fulfillment center in our community," said Troy Mellon, Town Council Mayor, Town of Johnstown. "Services like this help to not only create jobs in our community, but also allow us to focus on a core value of the Town, which is to spend more time with family and friends and doing the activities we love in Colorado."

"Kroger has developed a fulfillment facility that is unmatched in our community. This facility will meet the needs of both our community and the immediate surrounding area," said Matt LeCerf, Town Manager, Town of Johnstown. "The Kroger family and our partners at this facility have been amazing to work with and we are proud to welcome them to Johnstown. We are excited to watch them succeed."

"In Larimer County, we are always seeking opportunities that blend technology, sustainability and convenience to enhance the lives of our residents. Kroger's commitment to advancing grocery e-commerce with this spoke facility is a testament to the innovative spirit that thrives in Northern Colorado," said Jody Shadduck-McNally, Board Chair and County Commissioner (District 3), Larimer County. "The Board of County Commissioners is excited to partner with a brand that resonates with our community's values."

Whether using a phone or laptop, Northern Colorado customers can access thousands of digital coupons and gain more value when purchasing their favorite items using Boost by King Soopers, the annual grocery delivery membership program. Eligible customers can try the membership with a free 30-day trial and subscribe for as little as $7.99 a month. 

Kroger Delivery Explained 

The expansion to the Northern Colorado area represents an extension of a collaboration between Kroger and Ocado Group, a world leader in technology for grocery e-commerce. In 2018, the companies announced a collaboration to establish a delivery network that combines artificial intelligence, advanced robotics and automation in a bold new way, bringing first-of-its-kind technology to America.

Automated hub sites power this best-in-class customer experience. At each hub, bots navigate 3D grids filled with fresh, shelf-stable and household products to fulfill customers' orders. The system uses advanced AI to determine the packing process, ensuring products are packed accurately and correctly (with heaviest items on the bottom) and the fewest number of bags are used to reduce waste. Once the orders are assembled, associates provide important quality checks.

Products move from a climate-controlled fulfillment center directly into customized refrigerated delivery vans to ensure each item stays at the right temperature throughout the delivery process. With each Kroger Delivery van holding up to 20 orders, friendly drivers are then deployed to deliver orders in the most efficient manner possible, accounting for weather and road conditions. Drivers are also happy to accept any plastic bags or plastic film a customer may have, returning it to the facility where it will be recycled by a third-party vendor. Vans may travel up to 90 minutes with orders from the hub and spoke facilities to make deliveries. Associates at the spoke facility will deliver orders within their service area, adding ZIP codes as demand grows.

Kroger currently operates customer fulfillment centers in Monroe, OH, Groveland, FL, Forest Park, GA (Atlanta), Pleasant Prairie, WI, Dallas, TX, Romulus, MI (Detroit), Aurora, CO and Frederick, MD, with the expansion of additional customer fulfillment network facilities planned in the future.

Media Assets
To download Kroger Delivery photography and video, visit here.

About Kroger

At The Kroger Co. (NYSE: KR), we are Fresh for Everyone™ and dedicated to our Purpose: To Feed the Human Spirit®. We are, across our family of companies, nearly half a million associates who serve over 11 million customers daily through a seamless shopping experience under a variety of banner names. We are committed to creating #ZeroHungerZeroWaste communities by 2025. To learn more about us, visit our newsroom and investor relations site.

About Ocado Group
Ocado Group is a UK based technology company admitted to trading on the London Stock Exchange (Ticker OCDO). It provides end-to-end online grocery fulfillment solutions to some of the world's largest grocery retailers and holds a 50% share of Ocado Retail Ltd in the UK in a Joint Venture with Marks & Spencer. Ocado has spent two decades innovating for grocery online, investing in a wide technology estate that includes robotics, AI & machine learning, simulation, forecasting, and edge intelligence.

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SOURCE The Kroger Co.