Grocery giant Kroger announced Monday that Monroe, Ohio, a suburb outside of Cincinnati, will be the home of its first Ocado customer fulfillment center.
Last May, Kroger struck a deal with British online grocer Ocado to bolster its delivery business with the construction of about 20 robotically operated warehouses, as it continues to battle Amazon. Kroger is based out of Cincinnati.
Kroger is investing $55 million to build this first location, which is set to measure 335,000 square feet and generate more than 400 new jobs. These "sheds" typically take about two years to open.
"Kroger is joining with the best partners in the world to co-innovate and leverage technology to redefine the customer experience," Rodney McMullen, Kroger's chairman and CEO, said in a statement Monday. "We are incredibly excited to partner with Ocado to transform the industry and deliver on our Restock Kroger vision to serve America through food inspiration and uplift. This Kroger shed, powered by Ocado, will accelerate our ability to provide customers with anything, anytime and anywhere."
Ocado has previously worked with Morrisons in Britain, Casino in France, Sobeys in Canada and ICA Group in Sweden to build these automated warehouses.
Shares of Kroger were up by about a percent Monday.