US supermarket chain Kroger is expected to order its first three robotically operated warehouses from British online retailer Ocado by the end of 2018 following a major deal signed in May.
Under the terms of the agreement, Ocado will expand its delivery business by building 20 warehouses for Kroger in the US over the next three years as competition with Amazon intensifies.
Ocado has also recently signed similar deals withGroupe Casino in France, Sobeys in Canada,ICA in SwedenandMorrisons in the UK, however the collaboration with Kroger is Ocado’s biggest to date.
The deal will see Ocado develop and operate the new warehouses, orCustomer Fulfilment Centres (CFCs), for Kroger.
Reuters reported that Ocado did not disclose the location of the first three sites but the British firm said details would be made public by Kroger in the coming weeks.
The target is reportedly for each of the new CFCs to begin operating within approximately two years of being ordered.
