Kroger’s first customer fulfilment centre – an automated warehouse facility, also known as a “shed”. Credit: The Kroger Co.

American retailer Kroger and UK online supermarket Ocado Group have revealed that the first automated warehouse facility will be built in Cincinnati, US.

Kroger is investing $55m to establish the first customer fulfilment centre (CFC) in Monroe, Ohio, which will feature digital and robotic capabilities.

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The current investment is expected to create more than 410 new jobs. Construction of the first CFC is subject to securing state and local incentives.

Kroger chairman and CEO Rodney McMullen said: “Kroger is joining with the best partners in the world to co-innovate and leverage technology to redefine the customer experience.

“Kroger is joining with the best partners in the world to co-innovate and leverage technology to redefine the customer experience.”

“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.”

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Last month, Kroger signed a service and operational agreement with Ocado Group to establish 20 CFCs over the first three years.

Located in a 335,000ft2 of space, the facility will use innovative robotics technology for automated storage and retrieval.

Kroger business development senior vice-president Alex Tosolini said: “Ocado is a UK-based company with global ties and advanced digital and robotic capabilities.

“Working together, we will develop the strongest possible supply network to support a seamless customer experience that can serve every person in America. It’s all about building a seamless supply chain to provide our customers with an amazing shopping experience.”

Kroger currently operates 2,800 retail food stores under a range of brands. It has around 500,000 employees to serve nine million customers every day.