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Kroger Announces First Ocado Warehouse

Site will use robotics to optimize fulfillment efficiency

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The Kroger Co. (Cincinnati) will develop a $55 million warehouse and distribution center as part of its partnership with Hatfield, U.K.-based online grocer Ocado.

The first “shed,” as its being called, will open in Monroe, Ohio, an exurb of Kroger’s hometown of Cincinnati, where it will receive state and local tax incentives. The site will span 335,000 square feet and will use robotics to provide automated storage and product retrieval, reports the Cincinnati Business Courier, which will improve efficiency for customer pickup and home grocery delivery. The new facility is estimated to create about 400 jobs in the area, and is due to open in 2021.

Kroger and Ocado formed a partnership in May to build 20 such customer fulfillment centers across the country within three years.

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