New Kroger and Ocado facility announced in Frederick, Maryland

Facility will support Kroger's e-commerce initiatives in Washington D.C., Baltimore and Philadelphia

Kroger and Ocado's new customer fulfillment center – an automated warehouse facility with digital and robotic capabilities, also known as a “shed” [Credit: PRNewsfoto/The Kroger Co.]

Kroger Co. (NYSE: KR) and Ocado (LSE: OCDO) have announced Frederick, MD, as the latest location for a Customer Fulfillment Center (CFC).

This new 350,000-square-foot CFC will accelerate Kroger's ability to expand its products to a larger footprint. Upon completion, 400 new jobs will be created with up to 100 more added later as the service area of this facility expands.

The facility will be located at 7106 Geoffrey Way in Frederick, MD. The site confirms an earlier announcement identifying the Mid-Atlantic region as one of the first shed locations. It is expected to become operational 24 months after the site breaks ground and will service several markets, including Washington D.C., Baltimore and Philadelphia.

"Kroger is incredibly excited to construct one of our industry-leading Customer Fulfillment Centers in Maryland in relationship with Ocado to bring fresh food to our customers faster than ever before," said Robert Clark, Kroger's senior vice president of supply chain, manufacturing and sourcing. "Through our strategic partnership, we are engineering a model for the region, leveraging advanced robotics technology and creative solutions to redefine the customer experience."

"We are excited to bring Kroger and Ocado's latest automated warehouse to Frederick. This site will be key to delivering amazing grocery experiences to households across Maryland, Pennsylvania and the District of Columbia. It will also create fantastic job opportunities for engineers looking to work alongside state-of-the-art robotics and automation," said Luke Jensen, CEO of Ocado Solutions. "The warehouse will be a key component of the seamless fulfilment ecosystem that Kroger is developing for customers across the United States. Ocado's proven technology will allow Kroger to achieve the lowest cost-to-serve in the market, combined with the best freshness, accuracy and service." 

"We are thrilled that these two respected companies have chosen Maryland as the location for a new high-tech, innovative Mid-Atlantic hub," said Governor Larry Hogan. "This is a big win for Frederick County and yet another shining example that Maryland truly is open for business."

"This is excellent news for Frederick County," said Frederick County Executive Jan Gardner. "We are thrilled to welcome Kroger and Ocado. Their high-tech innovative business will bring life to a vacant distribution facility, will add hundreds of new jobs, and make an investment of tens of millions of dollars in our community. County staff worked closely with the businesses for many months, facilitating a smooth process for permits, water and sewer, and other details. We were pleased to fast-track the project and want Kroger and Ocado to know our support will be ongoing. We are pleased to welcome them to our growing e-commerce business community. Frederick County is a great place to do business."

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