Ocado Group lauds 'transformative' technology partnership with Kroger
Ocado Group has signed a major partnership with Kroger, a deal that it expects to 'transform' the retail technology sector.
The UK-based online grocer, which has achieved remarkable growth since its foundation in 2002, has teamed up with one of the world's biggest retailers to provide it with its unique technology solutions.
By utilising Ocado's Smart Platform, Kroger will implement its centralised, automated model of online retailing while the pair will also work on developing three sites for fully-automated warehouse facilities in the United States.
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Kroger will take a 5% share in Ocado as part of the deal, subscribing for up to 33,146,200 new ordinary shares at a value of £183mn.
"Ocado's unique, proprietary and industry-leading technology is set to transform the shopping experience of consumers around the world. Our success as a retailer shows that we can offer customers unrivalled choice, quality and convenience, efficiently and profitably," said its CEO Tim Steiner.
"As we work through the terms of the services agreement with Kroger in the coming months, we will be preparing the business for a transformative relationship which will reshape the food retailing industry in the US in the years to come."
Earlier this month, Business Chief reported that Ocado had signed a deal with ICA Group to provide the Swedish retailer with its cutting-edge ecommerce solution.