UK-based online grocery specialist Ocado added to its recent list of top-tier partnerships with the news that it has signed a major collaboration agreement with US group Kroger, the third-largest food retailer. to the world, to build a new e-commerce infrastructure.
The deal, which follows recent similar deals with Groupe Casino in France, Sobeys in Canada, ICA in Sweden and Morrisons in the UK, means that Kroger can exclusively use Ocado’s Smart Platform technology for what the company does. British described it as “grocery and other food-related distribution activities”.
According to Ocado, the partnership aims to enable Kroger to “redefine the grocery customer experience” in the United States by establishing a centralized and automated online retail model.
He also said that Kroger, which had sales of $ 122 billion in 2017, making it the largest grocery retailer in the United States by revenue, was in the best position for maintain this position of market leader.
Ocado will end talks with other US-based retailers, in exchange for Kroger paying exclusivity and advisory fees on a monthly basis before a more permanent financial deal going forward. Kroger will also take a 5% stake in Ocado.
Rapid expansion plan
According to a press release issued by Ocado, it is already working with Kroger to identify three locations in the United States for new automated warehouses.
That figure could reach 20 in the first three years of the partnership, he added.
Ocado CEO Tim Steiner said working with Kroger to transform the way American customers buy groceries represented “a huge opportunity to redefine the grocery experience” for Kroger customers.
“Ocado’s unique, exclusive and industry-leading technology is intended to transform the shopping experience of consumers around the world,” he commented.
“Our success as a retailer shows that we can provide our customers with unmatched choice, quality and convenience in an efficient and cost effective manner.
“As we work on the terms of the service agreement with Kroger over the next few months, we will prepare the company for a transformative relationship that will reshape the US food retail industry in the next few months. years to come. “
Rodney McMullen, President and CEO of Kroger, said, “We view Ocado as an innovative, exciting and transformative partnership in pursuit of our Restock Kroger vision, to serve America by inspiring and elevating the food.
The retailer’s efforts to create a “seamless digital experience” for customers would accelerate as a result, he added.