Kroger Co. (NYS:KR) has announced its entry into the northeast market with a customer fulfillment center powered by Ocado Group (LON:UK:OCDO) rather than a grocery store. The facility will offer next-day and same-day delivery. The two companies launched their first hi-tech facility in the U.S. in April. "Kroger's growing seamless ecosystem continues to scale, and we're committed to doubling both our digital sales and profitability rate by the end of 2023 and Kroger Delivery will help us reach this target," said Kroger Chief Executive Rodney McMullen in a statement. Kroger is also adding two customer fulfillment centers (CFCs) in California, and entering the South Florida market with two smaller facilities. "We have a pipeline of sites in development across the U.S., with several scheduled to open next year, and we're excited to continue delivering the Kroger experience to more doorsteps," said Gabriel Arreaga, Kroger's senior vice president and chief supply chain officer, also in a statement. Kroger stock has gained 24.7% for the year to date while the S&P 500 index (S&P:SPX) is up 15.5% for the period.
Oct. 13, 2021, 11:43 a.m. EDT