Kroger, Ocado to build CFC near Orlando

The Kroger Co. and online grocery retailer Ocado will build Kroger's second automated customer fulfillment center (CFC) in Groveland, Lake County, Fla., the companies said this week.

The announcement follows plans the companies revealed earlier this year to open two CFCs on the East Coast, one in Central Florida and one in the mid-Atlantic region. Cincinnati-based Kroger's first CFC will be located in Monroe, Ohio, a Cincinnati suburb, the companies said.

Kroger has said it will build 20 CFCs, powered by United Kingdom-based Ocado's automation technology, to "accelerate its ability to provide customers with anything, anytime and anywhere," the company said.

The CFC model is an automated warehouse facility with digital and robotic capabilities, also known as a "shed." Ocado has similar operations in the United Kingdom, which will be replicated to serve customers across America, the companies said. Each shed will operate on Ocado's Ocado Smart Platform (OSP) suite, which runs highly efficient warehouse operations for the single pick of products, together with applications ranging from user interfaces, through warehouse operating and control systems, logistics, route planning, and optimization, according to the companies.

The companies said they expect to break ground on the 375,000 square-foot Groveland CFC later this year and that it will be up and running in 2021.