Kroger opening distribution center in Maryland

Delaware, Maryland, Pennsylvania, Virginia, and West Virginia. No non-grocery posts.
mjhale
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Re: Kroger opening distribution center in Maryland

Post by mjhale »

klkla wrote: January 24th, 2020, 3:17 pm "Kroger said Thursday that the 350,000-square-foot customer fulfillment center (CFC) will be constructed at 7106 Geoffrey Way in Frederick and fill online grocery orders for shoppers in Maryland, Pennsylvania and the District of Columbia."

"Ocado CFCs use digital and robotic technology to service e-grocery orders. When unveiling their partnership in May 2018, Kroger and United Kingdom-based Ocado said they plan to open 20s CFCs in the United States over the next three years. The companies aim to replicate the CFC model as they build the facilities across the country, extending Kroger’s online grocery reach — possibly into new markets where the Cincinnati-based retailer doesn’t have stores. Kroger has said the CFCs cost about $55 million apiece to build and will give customers “anytime, anywhere” ability to place online orders. "

Maybe they meant they will ship to stores for customer pick up? https://www.supermarketnews.com/online- ... e-maryland
I can understand Kroger wanting to try to service DC and MD where they already have Harris Teeter stores. I am assuming that whatever service they run out of this new distribution center will be branded under the Harris Teeter name. There aren't a lot of people that I know that realize that Harris Teeter is owned by Kroger. However in regards to PA, Kroger hasn't had stores there since the mid 1980s and then it was only in western PA. What is there to make me order from Kroger as opposed to Giant-PA, Weis, Giant Eagle or Walmart? Those stores have name recognition and in turn a desire for someone to make an online order from those stores. But Kroger with no name recognition? They have to have a compelling reason for me to make an online order from them over a store that I already have familiarity with.

buckguy
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Re: Kroger opening distribution center in Maryland

Post by buckguy »

Kroger re-entered the Chicago market, where they had flamedout in the early 70s, with Food4Less and then picked-up stores via Roundy's. They may be planning acquisitions in PA or using online to re-enter the market. They could even do some kind of multiple banner thing. But mjhale's point is well taken Kroger's usual stores offer nothing that the middle of the road chains in that area already have. They may see an opportunity to try introducing H-T as an online banner---Wegman is further East in PA but not in Pittsburgh or elsewhere in SW PA, so Kroger may see an opportunity based on that gap in the market. Pittsburgh doesn't have a local "quality" chain like Heinen's in Cleveland (and Heinen's jumped to Chicago for their expansion).

It will be interesting to see what they try here, ditto Florida.

Knight
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Re: Kroger opening distribution center in Maryland

Post by Knight »

cw06 wrote: January 23rd, 2020, 10:12 am https://www.bizjournals.com/baltimore/n ... er-in.html

Looks like Kroger will be building an Ocado automated warehouse in Frederick, MD. My question is, will this warehouse service the existing Harris Teeter stores here in Maryland, or be a completely separate supply chain?
Does Harris Teeter plan to proceed with its distribution center in Caroline County, Virginia, announced four years ago>

cw06
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Re: Kroger opening distribution center in Maryland

Post by cw06 »

Knight wrote: January 27th, 2020, 9:13 am
cw06 wrote: January 23rd, 2020, 10:12 am https://www.bizjournals.com/baltimore/n ... er-in.html

Looks like Kroger will be building an Ocado automated warehouse in Frederick, MD. My question is, will this warehouse service the existing Harris Teeter stores here in Maryland, or be a completely separate supply chain?
Does Harris Teeter plan to proceed with its distribution center in Caroline County, Virginia, announced four years ago>
Haven't heard anything about it. Not much news pops up about it. I did a property records search and they still own the parcel though.

cw06
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Re: Kroger opening distribution center in Maryland

Post by cw06 »

On a whim I did a property records search, and it looks like Kroger owns the warehouse outright now. I was thinking they'd lease in case the project doesn't work out, but they're going all in.

https://sdat.dat.maryland.gov/RealPrope ... ber=026933

klkla
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Re: Kroger opening distribution center in Maryland

Post by klkla »

They announced three more Ocado warehouses.

"The Kroger Co. plans to build three new Ocado-powered automated warehouses in the Great Lakes, Pacific Northwest and West regions. Kroger didn’t yet disclose the specific locations of the robotics-driven customer fulfillment centers (CFCs), which will fill online grocery orders in their respective regions. So far, the Cincinnati-based supermarket giant has announced plans for nine CFCs, with the first slated to open in Monroe, Ohio, in early 2021."

"Compared to the previously announced CFCs, which are around 350,000 square feet, the new facilities will be smaller. Kroger said the CFCs will measure 300,000 square feet in the West, 200,000 square feet in the Pacific Northwest and 150,000 square feet in the Great Lakes. The company noted that the different sizes show the Ocado fulfillment ecosystem’s flexibility in serving various markets. "

https://www.supermarketnews.com/online- ... warehouses

storewanderer
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Re: Kroger opening distribution center in Maryland

Post by storewanderer »

klkla wrote: June 8th, 2020, 8:48 pm They announced three more Ocado warehouses.

"The Kroger Co. plans to build three new Ocado-powered automated warehouses in the Great Lakes, Pacific Northwest and West regions. Kroger didn’t yet disclose the specific locations of the robotics-driven customer fulfillment centers (CFCs), which will fill online grocery orders in their respective regions. So far, the Cincinnati-based supermarket giant has announced plans for nine CFCs, with the first slated to open in Monroe, Ohio, in early 2021."

"Compared to the previously announced CFCs, which are around 350,000 square feet, the new facilities will be smaller. Kroger said the CFCs will measure 300,000 square feet in the West, 200,000 square feet in the Pacific Northwest and 150,000 square feet in the Great Lakes. The company noted that the different sizes show the Ocado fulfillment ecosystem’s flexibility in serving various markets. "

https://www.supermarketnews.com/online- ... warehouses
Great to see they are finally building something new in the Pacific Northwest given I think it is one of their best markets... yet they haven't built more than about 5 new stores in the past 10+ years.

The indeterminate "west" location will be interesting. I would expect it will be in Las Vegas as that can realistically service Las Vegas, Phoenix, Salt Lake City, and SoCal. I would think if demand for this service ramps up enough it would justify having a dedicated center in SoCal and a center in AZ to serve those markets. Plus Kroger already has a Vitacost distribution there and a Smiths distribution (dry goods only no perishables) there.

Super S
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Re: Kroger opening distribution center in Maryland

Post by Super S »

storewanderer wrote: June 8th, 2020, 10:40 pm
klkla wrote: June 8th, 2020, 8:48 pm They announced three more Ocado warehouses.

"The Kroger Co. plans to build three new Ocado-powered automated warehouses in the Great Lakes, Pacific Northwest and West regions. Kroger didn’t yet disclose the specific locations of the robotics-driven customer fulfillment centers (CFCs), which will fill online grocery orders in their respective regions. So far, the Cincinnati-based supermarket giant has announced plans for nine CFCs, with the first slated to open in Monroe, Ohio, in early 2021."

"Compared to the previously announced CFCs, which are around 350,000 square feet, the new facilities will be smaller. Kroger said the CFCs will measure 300,000 square feet in the West, 200,000 square feet in the Pacific Northwest and 150,000 square feet in the Great Lakes. The company noted that the different sizes show the Ocado fulfillment ecosystem’s flexibility in serving various markets. "

https://www.supermarketnews.com/online- ... warehouses
Great to see they are finally building something new in the Pacific Northwest given I think it is one of their best markets... yet they haven't built more than about 5 new stores in the past 10+ years.

The indeterminate "west" location will be interesting. I would expect it will be in Las Vegas as that can realistically service Las Vegas, Phoenix, Salt Lake City, and SoCal. I would think if demand for this service ramps up enough it would justify having a dedicated center in SoCal and a center in AZ to serve those markets. Plus Kroger already has a Vitacost distribution there and a Smiths distribution (dry goods only no perishables) there.
I am wondering if they are wanting to get more distribution in place before building any more stores around the Pacific Northwest, or if they are planning to replace something already existing.

storewanderer
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Re: Kroger opening distribution center in Maryland

Post by storewanderer »

Super S wrote: June 9th, 2020, 5:15 pm

I am wondering if they are wanting to get more distribution in place before building any more stores around the Pacific Northwest, or if they are planning to replace something already existing.
These new centers are supposed to be solely for the online order fulfillment, not to supply stores.

I suppose that could change though.

Looking forward to seeing Kroger get back in the game in NorCal through this service, I think there is some real potential for them there, I hope they make a push there... In-store fulfillment of online grocery orders in NorCal seems to be very challenging with some of the highest UFCW payscales in the nation plus smaller sized stores which are not so easy to fulfill orders from and maintain in-stock conditions for walk in customers.

jamcool
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Re: Kroger opening distribution center in Maryland

Post by jamcool »

Maybe Kroger could convert some of their less profitable stores to delivery/online only locations, so the instore shoppers don’t have to deal with all of the employees and their delivery order carts

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