The Kroger (NYSE:KR) Co. KR is consistently making several efforts to boost consumers’ shopping experience. Treading the same path, it teamed up with KNAPP to deploy and expand its capabilities across the Great Lakes Distribution Center in Delaware, OH. Markedly, KNAPP is a leader in intelligent automation and offers specific software solutions for production, distribution and point-of-sale.
Impressively, the site has an exclusive KNAPP OSR (order, storage and retrieval) shuttles, which deliver grocery cases in an exact sequence to the RUNPICK robotic palletizers. This increases next-generation efficiency, thereby boosting the company’s supply-chain network. Hence, this robotic technology will drive the distribution center’s competence in replenishing stores, which will help the company offer fast delivery of fresh food to customers.
We note that the distribution center, which was opened in 2003, is presently getting renovated to add the state-of-the-art technology that is likely to be completed this summer. This expansion, which forms part of the ongoing transformation of the company’s supply chain, will double its capacity as well as aid innovation and scalability. Notably, the Delaware facility now serves about 115 stores in Central and Northwest Ohio apart from Southeast Michigan and the Ohio River Valley region. Meanwhile, the renovation will extend the plant by 130,000 square feet.
What’s More?
Kroger is also consistently widening its Customer Fulfillment Centers (CFCs) to ensure efficient deliveries on a dynamic retail landscape. This April, the renowned grocery retailer launched a highly-advanced Customer Fulfillment Center (CFC). The company’s new first-of-its-kind CFC in the United States is powered by Ocado’s leading e-commerce technology.
Last month, management announced the opening of its latest CFC in Groveland, FL. With this, the company makes a marked progress that allows it an entry in the Florida market with an e-commerce delivery service along with vertical integration, machine learning and robotics boasting quick and affordable delivery. Via these developments, Kroger looks to enhance its grocery e-commerce arm on the back of its differentiated offering that promises to bring fresh groceries directly to consumers’ doorstep. Strikingly, the Kroger Delivery network has technological efficiency coupled with the experience of the company’s associates to provide fresh food at reasonable rates.
Additionally, Kroger’s digital business remains one of its key drivers. The company has been focusing on no-contact delivery option, low-contact pickup service and ship-to-home orders for a while now. It also continued to expand contactless payment solutions like Kroger Pay, Scan as well as Bag and Go. Further, it constantly upgrades “Our Brands” portfolio by launching several products.
Well, all these endeavors consistently aided this currently Zacks Rank #3 (Hold) stock’s performance on the bourses. Precisely, shares of the Cincinnati, OH-based company have increased 15.9% in the past six months, outperforming its industry’s 2.5% growth.
Key Picks in Retail
Target TGT has a long-term earnings growth rate of 13.3% and a Zacks Rank #1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco COST has a long-term earnings growth rate of 9.1% and a Zacks Rank #2 (Buy) at present.
Walmart (NYSE:WMT) WMT, presently a Zacks #2 Ranked stock, has a long-term earnings growth rate of 5.5%.
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Target Corporation (NYSE:TGT): Free Stock Analysis Report
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