Kroger Shakes Up Grocery Delivery Market With Ocado Partnership

Kroger will expand its online ordering, automated fulfillment and home delivery capabilities through a partnership with Ocado, a UK-based online grocery retailer. Ocado will partner exclusively with Kroger in the U.S., providing the grocery retailer with access to its Ocado Smart Platform.

The companies are working to identify locations for three automated warehouses in the U.S. this year and up to a total of 20 locations in three years.

Kroger will take an additional 5% stake in Ocado, bringing its total investment to more than 6%. The partnership is part of the Restock Kroger initiative.

“We see Ocado as an innovative, exciting and transformative partnership in pursuit of our Restock Kroger vision, to serve America through food inspiration and uplift,” said Rodney McMullen, Chairman and CEO of Kroger, in a statement. “We are actively creating a seamless digital experience for our customers. Our partnership with Ocado will speed up our efforts to redefine the food and grocery customer experience — creating…