1. Channel: Grocery

Kroger adds fulfillment center in Wisconsin

CINCINNATI — Kroger Co. is expanding its online order delivery network with the addition of a new customer fulfillment center (CFC) in Pleasant Prairie, Wis., the company said last month.

“We are thrilled to launch Kroger Delivery in Pleasant Prairie, continuing our long-standing engagement in the state of Wisconsin,” said Kroger senior vice president and chief supply chain officer Gabriel Arreaga. “Our tradition of fresh is all about our customers, and this true milestone moment incorporates end-to-end cold solutions, including customized refrigerated vans, providing Kenosha County residents with everything fresh, every time.”

Arreaga said the project is bringing nearly 250 jobs to the 336,840-square-foot CFC and will enable Kroger to expand its delivery services in the region. Pleasant Prairie is located between Chicago and Milwaukee.

This expansion represents an extension of a partnership between Kroger and the grocery e-commerce company Ocado. 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 like the one opening in Kenosha County, which Kroger said help the company “continue to put the customer at the center of everything we do.”

Kroger cited its e-commerce solutions as a factor in recent sales increases. Kroger posted sales of $44.6 billion in the three months ended May 21, compared to $41.3 billion in the comparable period in 2021. Excluding fuel, fiscal first quarter sales were up 3.8%. Comparable-store sales increased 4.1%. Operating profit was $1.51 billion, and Kroger had an adjusted FIFO operating profit of $1.6 billion in the period. Adjusted earnings per share came in at $1.45.

“Kroger achieved strong first quarter results as we successfully executed on our strategy of Leading with Fresh and Accelerating with Digital,” said Rodney McMullen, Kroger’s chairman and chief executive officer. “Our team is doing an outstanding job managing costs in an inflationary environment, which is allowing us to continue to invest in our associates while providing our customers the freshest food at affordable prices when and where they need it. We are delivering everyday value through personalized experiences, trusted Our Brands products, data-driven promotions, and seamless e-commerce solutions.”

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