Move over, H-E-B. Kroger, America’s largest grocery retailer, is making a play for the San Antonio-based chain’s business via an Amazon-inspired delivery model.
The automated, virtual grocery store’s launch will create 160 new jobs in areas such as technology, operations, logistics and transportation, inventory and quality management — without opening any physical Kroger stores, according to company officials.
“Kroger today looks very different than it did in 1883 when we opened our first store. But the core principles that made that store successful — service, selection, value and our commitment to our customers — remain the bedrock of our business,” Kroger CEO Rodney McMullen said in a release. “I’m incredibly excited for the future of Kroger, and both thriving physical stores and digital solutions are part of it.”
The 67,000-square-foot facility in Northeast San Antonio is pending final lease negotiations. The fulfillment center — operated by more than 1,000 bots on giant 3-D grids — is expected to become operational later this year.
Kroger’s concept allows customers to order groceries online in collaboration with a “hub” facility in Dallas, serving as a last-mile cross-dock location to expand the company’s grocery delivery services. After being “intelligently packed” by AI systems and algorithms, Kroger employees would then hand-deliver items to customers’ homes.
Kroger anticipates opening 17 new facilities — including fulfillment centers in California, Maryland, Arizona, Wisconsin, Michigan and South Florida — within the next 24 months.
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This article appears in Feb 23 – Mar 8, 2022.
