Kroger Co. is expected to order the first three high-tech warehouses from U.K. online grocer Ocado by the end of 2018, reports Reuters. Ocado did not disclose the location of the first three sites but said details will be made public by Kroger in several weeks. The companies have worked out more details of the plan, including how Kroger will order warehouses, or what Ocado calls Customer Fulfillment Centers, and the basis on which Ocado will develop and operate the sites in the U.S.
Kroger is expected to order 20 CFCs over the first three years of the agreement. The goal is for Kroger's CFCs to go live within approximately two years of each order being placed. Ocado agreed to install and maintain modules of Mechanical Handling Equipment sufficient to provide an agreed level of processing. The first CFCs ordered in 2018 will have funding requirements similar to earlier deals.
Announced in May, the Kroger deal is Ocado's biggest yet and will exceed all of the warehouses the firm has built or plans to build with other retailers, including Morrisons in Britain, Casino in France, Sobeys in Canada, and ICA Group in Sweden. The expansion will also enable Ocado to ramp up its delivery business, according to the report. Full Story
Related: Kroger: Plant-Based Foods, Regional Flavors Top Trends; Walmart Aims to Be High-Tech.
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