Ocado to enter US market with 'transformative' Kroger deal

By Laura Mullan
US retailer Kroger has signed a landmark deal with Ocado to use its technology for grocery deliveries, marking the British online grocer...

US retailer Kroger has signed a landmark deal with Ocado to use its technology for grocery deliveries, marking the British online grocer’s first entry into the United States.

Kroger, who has the second biggest grocer in the US after Walmart, also agreed to buy a 5% stake in the UK online supermarket.

Now, the two companies are working to identify the first three sites for the development of new, automated warehouse facilities and will identify up to 20 sides over the first three years of the agreement.

Kroger, who posted revenues of $122bn last year, will utilise Ocado’s technology to automate and process the packing of grocery orders, using smart warehouses and robots in advanced fulfilment centres.

SEE ALSO:

Rodney McMullen, Kroger’s chief executive, said the partnership would the grocer “redefine the food and grocery customer experience — creating value for customers and shareholders alike”.

Ocado’s chief executive, Tim Steiner, described the deal as “transformative” and said it would “reshape the food retailing industry in the US in the years to come."

Ocado’ s biggest deal to date, is the latest in a series of tie-ups by the online retailer.

Earlier this month, it inked a deal to build Swedish supermarket ICA’s online grocery business and it also has finalised deals with Canadian grocery Sobey’s and french supermarket company Groupe Casino.

As part of the agreement, Kroger will be the British firm’s exclusive partner in the US and will pay undisclosed monthly exclusivity and consultancy fee to the company.

Ocado said that it predicts the deal will have a neutral impact on its earnings this year.

Share

Featured Articles

Qlik's Julie Kae: Leveraging Data to Improve Sustainability

In an exclusive interview with Qlik’s Julie Kae, she explores siloed data business challenges and how leveraging data can improve sustainability strategies

Study: More than Half of Companies Lack AI Innovation Skills

Research by SoftwareOne reveals a stark human skills gap in maximising AI and cloud potential, as 97% of companies prioritise upskilling workforces

Devoteam Expands into UK Market, Acquires Ubertas Consulting

Devoteam acquires cloud business and AWS consultancy, Ubertas Consulting, to deliver AWS services to a broader client base and expand into UK markets

NTT DATA: Outdated Tech Holding Back Global Organisations

Digital Transformation

CGG Rebrands to Viridien to Become an Advanced Tech Company

Cloud & Cybersecurity

Zoom Invests in UK Market with Immersive Experience Centre

Digital Transformation