Kroger Opens Dallas Fulfillment Center
The largest U.S. grocery chain is expanding its hub-and-spoke distribution network.
Kroger Delivery Robots. Image courtesy of The Kroger Co.
The Kroger Co. continues to build out its delivery network that uses artificial intelligence and automation relying on its partnership with U.K.-based grocery e-commerce tech company Ocado Group. The U.S.’ largest grocery retailer opened a 350,000-square-foot customer fulfillment center in Dallas.
The facility at 4221 Telephone Road created more than 500 jobs. A joint venture between Ridgeline and Archway sold the 56-acre site to Kroger in late 2019, after the Dallas City Council approved a $5.7 million incentive package for the development, according to The Dallas Morning News.
The two newest distribution facilities, the Dallas one and another in Pleasant Prairie, Wis., bring the total number of such centers to five. To optimize and expand its delivery network, Kroger plans to open additional spoke locations, including in Austin, Texas, and San Antonio.
Both cross-dock facilities, along with one in Oklahoma City, will collaborate with the newly opened Dallas hub. Kroger expects to finalize a 70,000-square-foot lease agreement for the Austin spoke, as well as a 67,000-square-foot contract for the San Antonio property.
Expansion plans also include a spoke totaling 40,000 square feet in Nashville, Tenn., which will serve the 375,000-square-foot customer fulfillment centers in Forest Park, Ga., along with an 80,000-square-foot facility in support of the Pleasant Prairie hub encompassing 340,000 square feet. Each spoke is expected to bring 180 jobs.
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