Ocado has been seeking the best to expand its new technology in the online retail industry and hence it has joined hands with Kroger. The reason is that Ocado feels Kroger is one of the best retailers in the US. With over $122 billion in sales last year, Kroger stands 2nd in the market after Walmart. Hence, with the deal of 5% stake for an investment which was worth around $247 million for Kroger, it is now the only retailer which will be using Ocado’s technology for online retailing. This is an exclusive news and the doors are shut for all the other retailers in the US.
After a successful campaign in various other countries like France, Canada, and Sweden, Ocado has procured companies like Groupe Casino Rallye SA, Sobey Inc., ICA Gruppen AB respectively in the past 6 months. By doing so it has raised its shares in London by almost 44% to 51%, which is something to consider in terms of record heightening.
As of now both Kroger and Ocado are seeking new sites for their three new automated distribution centers, in other words, automated warehouses for their business this year. Not only that, their future projections say both the companies will surely be opening around 20 new ones in the time frame of three years. Choosing the 2nd best in the US market, Ocado is confidence and stands strong in its decision for a new venture.