Economy

Kroger Invests in Ocado, Will Use UK Grocer's Tech in US

Kroger Invests in Ocado, Will Use UK Grocer's Tech in US

The deal, which follows recent similar deals with Groupe Casino in France, Sobeys in Canada, ICA in Sweden and Morrisons in the United Kingdom, means Kroger can make exclusive use of Ocado's Smart Platform technology for what the British firm described as "grocery and other food distribution-related activities".

"As we work through the terms of the services agreement with Kroger in the coming months, we will be preparing the business for a transformative relationship which will reshape the food retailing industry in the U.S.in the years to come", noted Steiner.

Industry analysts called the partnership with Ocado a big win for Kroger and said it will turn up the heat on its grocery competitors in the online realm.

"The most critical effect of today's news is the need for other major USA players to react", said Jefferies analyst James Grzinic.

Whole Foods did not immediately respond to requests for comment on the deal.

In the longer term, Kroger will retain exclusivity in the USA conditional upon its meeting market share targets or ordering an agreed number of fulfilment centers per year.

The plan is to roll out three customer fulfilment centres (giant automated warehouses) this year and a total of 20 over three years.

More news: Pastor Robert Jeffress Responds To Mitt Romney and Other Critics

The companies will find three locations for new warehouses this year and said they would find locations for a total.

"We have little doubt that an attractive return on invested capital will be achieved on the huge amount of capital set to be invested across Ocado's global Ocado Smart Platform partnerships and, with a significant long-term earnings runway now in place, retain our positive stance". It also said it planned to offer curbside pickup from roughly 1,600 stores this year. It has made similar deals with Morrisons in the U.K., Group Casino in France, Sobeys in Canada and ICA in Sweden.

Co-founder and chief executive Tim Steiner saw the value of his stake in the firm rise more than 100 million pounds on Thursday to about 240 million pounds, according to Thomson Reuters data.

"It could also lose exclusivity rights, so (it) appears Ocado has given itself some options should this not go as well as planned".

It has even said it will pay compensation if it fails to hit the capacity targets the two retailers have agreed.

Ocado's share price rocketed by 44% after the deal was announced.


  • Syria's Assad Meets With Russia's Putin In Sochi

    Syria's Assad Meets With Russia's Putin In Sochi

    The Russian President is also meeting German Chancellor Angela Merkel and French President Emmanuel Macron in the next few weeks. Its military support not only ensured the survival of Assad's regime but also changed the course of the war.
    Stalker 2 is in development (again)

    Stalker 2 is in development (again)

    Stalker 2 was originally revealed back in 2010 , but it didn't get very far before everything-the game and the studio-fell apart. Later, In 2012 GSC Game World stated that the game was "currently in development" without a release date .
    Chelsea star's future takes precedence over finding Antonio Conte's replacement

    Chelsea star's future takes precedence over finding Antonio Conte's replacement

    That may well have been his final Premier League game in charge of this football club, and it epitomised everything that's gone wrong for him this season.
  • Call of Duty: Black Ops 4 won't have a single player campaign

    Call of Duty: Black Ops 4 won't have a single player campaign

    Finally, as previously leaked, Call of Duty: Black Ops 4 will feature its own twist on the battle royale genre via " Blackout ". Activision and Treyarch are back this year with a brand new Call of Duty: Black Ops 4 multiplayer reveal trailer.
    Net Neutrality CRA Vote

    Net Neutrality CRA Vote

    Senate Democrat Ed Markey of MA and colleagues are forcing a floor vote to "save" something called "net neutrality". However, net-neutrality supporters are also seeking to overturn the FCC's action in federal courts.
    Ronaldo speaks on Neymar's transfer to Real Madrid

    Ronaldo speaks on Neymar's transfer to Real Madrid

    Liverpool face off against Real Madrid in the Champions League final later this month, in a much-anticipated game. Messi told TyC Sports on Tuesday that "it would be bad , for all that Ney means to Barcelona ".
  • PayPal to buy Swedish payments group iZettle for $2.2bn

    PayPal to buy Swedish payments group iZettle for $2.2bn

    Both PayPal and Square are vying to help mostly small- and medium-sized retailers process sales that aren't paid with cash. The deal will have forced PayPal's hand for years.
    EU's Tusk asks:

    EU's Tusk asks: "With friends like Trump, who needs enemies?"

    It is absurd to even think that Europe could be a threat to the United States. Therefore U.S. tariffs can not be justified on the basis of national security.
    Guatemala opens new embassy in Jerusalem following United States  lead

    Guatemala opens new embassy in Jerusalem following United States lead

    Guatemala previously had an embassy in Jerusalem, the first country in the world to open an embassy in the city in 1956. Guatemala was the first nation after the United States to recognize Jerusalem as Israel's capital, on December 24, 2017.
  • Senior Prank In Wisconsin A Big Hit, Praised By Police

    Senior Prank In Wisconsin A Big Hit, Praised By Police

    The West ISD issued a statement Monday aimed at debunking rumors that a student was seriously injured during a senior prank. The gaping hole is actually just a black tarp held up to the exterior wall of the school by what appears to be duct tape.
    PLAYOFFS: CELTICS vs. Cavaliers (East Finals Game 2)

    PLAYOFFS: CELTICS vs. Cavaliers (East Finals Game 2)

    Maybe, just maybe, the home crowd inside Quicken Loans Arena will be exactly what the Cavs need in order to help themselves out. Cleveland Cavaliers (50-32) #4 8:30 p.m., TD Garden, Boston, MA. "At this point we don't care if we win by half a point".
    Donald Trump pays hospital visit to recovering first lady Melania

    Donald Trump pays hospital visit to recovering first lady Melania

    But both made a point of displaying affection during last week's Rose Garden event where she announced the "Be Best" initiative. The Slovenia-born wife of Donald Trump underwent an embolization procedure, said her communications director Stephanie Grisham.