AUSTIN, Texas — The Kroger Co. (NYSE: KR), America’s grocer, today announced the official opening of a new spoke in Austin, Texas. This facility opening means customers can tap into Kroger’s incredible selection of fresh items, unique Our Brands products and favorite national brands, as well as individualized offers for the groceries most important to their families – all delivered directly to their door by a friendly, professional associate. Kroger was joined by the local community to officially open the spoke and to celebrate its new associates.
“Austin is one of the fastest-growing cities in the country, and we are thrilled to connect more customers to the Kroger Delivery shopping experience, which brings thousands of digital coupons, valuable fuel points and the freshest products directly to customers’ doors,” said Rebekah Manis, Senior Director, Kroger Delivery Fulfillment Centers. “Whether they are using the Kroger app or browsing our weekly ad at Kroger.com, customers can enjoy fresh, high-quality, affordable groceries delivered by best-in-class uniformed drivers.”
The 70,121 -square-foot spoke facility located in Austin, Texas will work in conjunction with the Dallas fulfillment center. All orders are picked at the products’ peak freshness within the Dallas facility. Associates carefully assemble orders and place them in climate-controlled vehicles to travel to Austin. 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 will employ nearly 70 associates. Learn more about pursuing a career at Kroger here.
“Much of District 1 is what the USDA identifies as a ‘food desert’ which is defined as an area where residents have limited options for securing affordable and healthy foods. And although this Kroger facility will serve all of Austin, it’s important to note that its location is in one of these areas,” said District 1 City Councilmember Natasha Harper-Madison. “I am glad to see Kroger making this investment in our community starting right here in District 1 where residents need access to healthy, fresh food.”
Austin customers can get more value when purchasing their favorite items using Boost by Kroger Plus, the annual grocery delivery membership that can save customers up to $1,000 per year on fuel and grocery delivery. Eligible customers can try the Boost membership with a free 30-day trial and subscribe for as little as $7.99 a month.
Kroger Delivery Explained
Kroger Delivery CFCs, powered by Ocado Group have achieved a significant step up in geographical penetration and in customer satisfaction. Kroger is bringing these benefits to the Austin area with the Dallas CFC, and to more U.S. markets.
The expansion to the Austin 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.
The delivery network relies on highly 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.
Kroger’s end-to-end cold solutions keep groceries fresh once loaded into a customized refrigerated delivery van, which can store up to 20 orders. 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.
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 additional customer fulfillment centers slated for California, Phoenix, AZ, Cleveland, OH, Charlotte, NC, as well as South Florida and the Northeast.
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.
