Kroger Growing Grocery Sales With Spokes

A recent SupermarketNews article reported that Kroger is continuing to grow e-commerce through expansion and by leveraging technology.

The article said two more automated “spoke” supporting facilities have been opened as “The Kroger Co. continues to build out its e-commerce network driven by Ocado Group technology, a Canada based firm.

As you may know, the spokes serve as a last-mile cross-dock sites for online grocery delivery and help extend the reach of delivery service. The hub and spoke model refers to a distribution method in which a centralized “hub” exists. Everything either originates in the hub or is sent to the hub for distribution to consumers. From the hub, goods travel outward to smaller locations owned by the company, called spokes, for further processing and distribution.

“The continued expansion of the Kroger fulfillment network means improved access to fresh food for customers eager for the variety and value offered by Kroger that once could only be accessed through our stores,” Gabriel Arreaga, senior vice president and chief supply chain officer at Kroger, said in a statement. “This network enables Kroger to add scale, achieve reliability of experience, gain from the benefits of automation and ultimately widen our customer reach in current operating regions and new parts of the U.S.”