Kentucky Lands Kroger E-Commerce Center

Distribution Fulfillment Facility Will Create 98 Full-Time Jobs
Kroger grocery bags
Kroger Co. is investing $550,000 in its new distribution fulfillment facility. (Luke Sharrett/Bloomberg News)

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Northern Kentucky is getting a new $550,000 distribution center from a unit of The Kroger Co. to give the grocery store giant a larger e-commerce foothold in the state and Ohio.

“Kentucky’s unique location and access to resources make our distribution and logistics sector one of the strongest in the country,” Gov. Andy Beshear announced May 30. “We are continuing to see announcements in this sector that are bringing incredible opportunities and jobs to our communities across the state.”

The Kroger Co. ranks No. 25 on the Transport Topics Top 100 list of the largest private carriers in North America.

Wholly owned subsidiary Kroger Fulfillment Network will open a spoke (or cross-docking facility) in a 2,000-square-foot portion of an existing building in Boone County that will create 98 full-time jobs and expand the reach of a customer fulfillment center in Monroe, Ohio.

Ben Hamilton of Kroger


Ben Hamilton, vice president of Logistics and Network Strategy at Kroger Delivery, said, “We are passionate about delivering a fresh, convenient customer shopping experience. This expansion will mean lower prices and more choices for more people across Kentucky.”

Lee Crume, CEO of the northern state economic development company called BE NKY Growth Partnership, expressed gratitude for the project.

“We applaud Kroger on the expansion of its facility to increase its e-commerce grocery delivery capabilities and provide customers throughout Cincinnati and Northern Kentucky with access to affordable and healthy foods,” Crume said.

Kroger plans to open other new customer fulfillment centers in Cleveland, Phoenix and Charlotte, N.C., as well as California, South Florida and the Northeast.

In March, Kroger launched expanded delivery services from a 70,121-square-foot spoke facility in Austin, Texas, that works with a Dallas fulfillment center. All orders are assembled with “peak freshness” products from the Dallas facility and put inside climate-controlled vehicles bound for Austin. When orders arrive, they are checked and put into refrigerated delivery trucks for transport directly to customers’ doors.


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Kroger has e-commerce customer fulfillment centers in Monroe, Ohio; Groveland, Fla.; Forest Park, Ga. (Atlanta); Pleasant Prairie, Wis.; Dallas; Romulus, Mich. (Detroit); Aurora, Colo.; and Frederick, Md.

The company’s customer fulfillment centers are in a collaborative arrangement with U.K.-headquartered Ocado Group, a world leader technology for grocery e-commerce. In 2018, both companies announced a plan to create a delivery network using artificial intelligence, advanced robotics and automation “in a bold new way, bringing first-of-its-kind technology to America” in automated fulfillment centers.

“At the hub sites, 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,” according to Kroger. “Powerful machine learning algorithms optimize delivery routes, considering factors such as road conditions and optimal fuel efficiency. 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.”

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