INDIANAPOLIS, Dec. 16, 2021 /PRNewswire/ -- The Kroger Co.
(NYSE: KR), America's largest grocery retailer, today announced an
expansion of its Kroger fulfillment network. The addition of a
delivery "spoke" brings innovation and modern e-commerce to
the Indianapolis area, extending
the grocer's reach and ability to provide its customers anything,
anytime, anywhere.
"We're proud to welcome the Kroger fulfillment network to
Indiana," said Colleen Juergensen, president of Kroger's
Central Division. "The new service is a wonderful addition to the
expanding digital experience available to Kroger customers. The
network's delivery spoke will provide unmatched customer service
and improve access to fresh food in areas eager for the variety and
value offered by Kroger."
Located at 9222 E. 33rd Street in Indianapolis, the 48,000-square-foot facility
will collaborate with the "hub" in Monroe, Ohio to connect customers with
fresh food.
Customer Experience and Coverage Areas
At launch,
Hoosiers in 35 Central Indiana ZIP codes, mostly in the
Indianapolis area, can experience
Kroger Delivery. Richmond, which
is near the "hub" in Ohio, is also
part of the coverage area. After placing an order via
Kroger.com or the Kroger app, customers in participating areas
will have their groceries delivered by a knowledgeable Kroger
Delivery associate in a temperature-controlled van. The Kroger
Delivery associate will deliver industry-leading customer service,
including ensuring order freshness and satisfaction, managing order
changes, and informing customers of their loyalty membership
benefits like earned fuel points and digital coupon savings. The
delivery network will also continue to leverage stores and
third-party partners to deliver certain orders.
As part of Kroger's commitment to provide a differentiated and
affordable grocery delivery experience for customers, Kroger
Delivery will offer variable delivery fees that do not require
customers to provide a tip and are influenced by several factors
like a customer's loyalty, delivery window popularity, route
optimization and the lead time of an order.
"This fulfillment center is another example of how Kroger is
transforming e-commerce in the grocery industry using a vertically
integrated network to provide a reliable and consistent delivery
service that repeatedly receives favorable customer feedback like a
best-in-class Net Promoter Score. Our expansion in Indiana represents our commitment to
delivering fresh, affordable food in both existing and new
geographies," said Bill Bennett,
Kroger vice president and head of e-commerce. "As our e-commerce
business accelerates, we're excited to continue expanding our reach
and loyalty by delivering our customers an exceptional service for
as little as $6.95 powered by
high-tech facilities."
The opening of the Indianapolis
fulfillment center follows another e-commerce achievement for the
grocer in the area, the recent launch of the Boost by Kroger
Plus annual membership program. For either $59 or $99 per
year, Boost provides customers access to benefits like free
delivery and the opportunity to earn up to $1 off per gallon of fuel twice as often.
Kroger Delivery Career Opportunities
The Indianapolis fulfillment center will create up
to 150 jobs and is currently hiring associates for various roles,
including delivery drivers, with a starting wage of $19 plus benefits like healthcare and
retirement.
State and local agencies welcome the new enterprise and the jobs
it will create. "We're excited by Kroger's commitment to continue
investment in our community," said Mayor Joe Hogsett. "This expansion not only promises
more jobs for the Indianapolis
economy, but also brings the benefits of cutting-edge technology to
the local residents who use these inclusive delivery services."
"Indiana's pro-business
ecosystem is an easy sell for companies like Kroger," said
Brock Herr, senior vice president of
business development for the Indiana Economic Development
Corporation. "We're delighted to see Kroger continuing to grow with
Indiana, working toward delivering
innovative, technology-driven solutions to meet ever-evolving
customer needs and producing even more opportunities for
Hoosiers."
The IEDC has committed to invest in Kroger (dba Kroger
Fulfillment Network LLC) in the form of performance-based tax
credits based on the company's job creation and investment
plans.
"We're excited to be part of the announcement of Kroger's new
delivery facility," said Portia
Bailey-Bernard, Vice President, Indianapolis Economic
Development, Develop Indy. "This accelerates us toward our goal of
a more equitable, accessible, nutritious, healthier food system for
Indianapolis. Providing greater
accessibility to fresh food without relying on personal
transportation creates neighborhood equity in Indy through fresh,
grocery delivery."
Kroger Delivery Explained
The expansion in
Indianapolis represents an
extension of a partnership between Kroger and Ocado (LSE: OCDO), 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. Kroger Chairman and CEO Rodney
McMullen said Kroger Delivery "underpins the permanent shift
in grocery consumer behavior and elevates our position as one of
America's leading e-commerce companies." Through the delivery
network, the company now serves customers in Florida, as an example, without traditional
brick-and-mortar stores.
The delivery network relies on highly automated fulfillment
centers. At the "hub" sites, more than 1,000 bots whizz around
giant 3D grids, orchestrated by proprietary air-traffic control
systems in the unlicensed spectrum. The grid, known as The
Hive, contains totes with products and ready-to-deliver
customer orders.
As customers' orders near their delivery times, the bots
retrieve products from The Hive and are presented
at pick stations for items to be sorted for delivery, a process
governed by algorithms that ensures items are intelligently packed.
For example, fragile items are placed on top, bags are evenly
weighted, and each order is optimized to fit into the lowest number
of bags, reducing plastic use.
After being packed, groceries are loaded into a
temperature-controlled 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 miles with orders from
the "hub" and "spoke" sites to make deliveries. Associates at the
"spoke" will deliver orders within their service area, adding ZIP
codes as demand grows.
Kroger unveiled the Monroe
fulfillment center earlier this year in April, its first, followed
by another in Groveland, FL. The
fulfillment network plans additional sites in California, Dallas,
TX, Forest Park, GA
(Atlanta), Frederick, MD, Phoenix, AZ, Pleasant Prairie, WI, Romulus, MI (Detroit), as well as South Florida and the Northeast.
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.
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SOURCE The Kroger Co.