Kroger Inks Ocado Grocery Delivery Deal To Battle Amazon Threat

30

LONDON/LOS ANGELES – U.S. supermarket chain Kroger Co (KR.N) struck a deal with British online grocer Ocado (OCDO.L) to build and deliver from robot-staffed warehouses, upping the ante in Kroger’s battle with Amazon.com Inc (AMZN.O) and sending Ocado shares rocketing.

The U.S. grocery industry is dominated by Walmart Inc (WMT.N) and Kroger but has been in upheaval since last summer, when Amazon’s $13.7 billion purchase of Whole Foods sent supermarkets scrambling to match the online retailer on home delivery.

The Kroger deal announced on Thursday was Ocado’s first in the United States and the British company’s fourth major agreement with retailers in six months.




Leave a Reply

Your email address will not be published. Required fields are marked *