british robot-using online grocer
British robot-using online grocer licensing their technology to US Kroger chain
Ocado, the UK leader in home-delivered groceries from robot-run distribution centers, has established a licensing deal with US grocery chain Kroger (NYSE:KR) whereby Kroger will take a 5% stake in Ocado – an investment valued at $247.5 million and Ocado will help Kroger set up systems to manage online ordering, fulfillment and delivery operations utilizing Ocado-proven technologies. Ocado will see the Kroger chain build up to 20 Ocado-designed robot-run warehouses over its first three years. In a recent letter to Kroger stockholders, CEO Rodney McMullen said that Kroger is redeploying capital to emphasize improving its digital capabilities and enabling customers to shop in the store, by ordering online and picking up their order at the store, or getting their groceries delivered to their homes. Although McMullen didn't single out Amazon or any other competitors in the supermarket arena, Amazon's acquisition of Whole Foods and Walmart's price-cutting moves and partnering with online grocery deliver service Instacart are rapidly changing the landscape of grocery shopping. "Kroger is right in the middle of such a reinvention," McMullen said in the shareholder letter.
- North America > Canada (0.07)
- Europe > Sweden (0.07)
- Retail (1.00)
- Consumer Products & Services > Food, Beverage, Tobacco & Cannabis (1.00)