Ocado agrees service and operational terms with Kroger
Online supermarket Ocado has signed service and operational terms with US supermarket Kroger following the partnership agreement signed in May in which Ocado will provide the technology for grocery deliveries in the US.
Under the terms of the agreement, Kroger is expected to order 20 customer fulfilment centres during the first three years of the agreement, the first three of which will be ordered by the end of this year.
As with recent deals with other retailers, Ocado has agreed to install and maintain modules of mechanical handling equipment sufficient to provide an agreed level of throughput. The aim is for Kroger’s customer fulfilment centres to go live within around two years of each order being placed.
Further details on the location of the first three customer fulfilment centres will be made public by Kroger within the next few weeks.
Kroger is one of the world’s biggest grocery retailers with sales of $122 billion in its 2017 financial year.
Luke Jensen, chief executive of Ocado Solutions, said: “The Kroger and Ocado teams have been working hard for some time to prepare for the opening of the first CFCs in the United States. We are very excited at the prospect of helping Kroger bring new services and value to its customers and transform the food retail market in the US.”
