Ocado shares rocket on Kroger tech deal

The online grocer signs a deal to supply its technology with US retail giant Kroger.

Ocado delivery van

Shares in online grocer Ocado have surged by 60% after it struck a deal with US retail giant Kroger.

Ocado's technology will be used in the US exclusively by Kroger, which is one of the world's biggest grocery chains with annual sales of $122bn (£90bn).

Under the terms of the deal, Kroger will also take a 5% stake in Ocado.

The agreement is the latest in a series of deals that Ocado has struck with retailers to share its technology that automates online grocery orders,

The Kroger deal is the fourth agreement Ocado has reached in six months, and marks its first foray into the US.

Shares in Ocado had jumped by 334p, or 60%, to 886p by midday.

Ocado and Kroger are already looking to identify the first three sites for automated warehouse facilities in the US, and are aiming for up to 20 sites over the first three years of the agreement.

As the deal with Kroger is exclusive, Ocado said it would now end talks with other US-based retailers.

In the past few months, Ocado has struck deals to share its technology with Groupe Casino in France, Sobeys in Canada and ICA Group in Sweden. It also operates the online business of the UK's fourth largest supermarket, Morrisons.

'Ocado is making great strides in the global grocery market," said Laith Khalaf, senior analyst at Hargreaves Lansdown.

"The company is known in the UK as an online supermarket, but that's just the tip of the iceberg, as Ocado is primarily a technology and logistics firm with the potential to license out its services to grocers around the world.

"Indeed there seems to be a bit of a queue forming, made up of those who want to play catch-up in the digital retailing age, and consequently Ocado now has a foothold in the hugely important US market, as well as the UK, France and Canada."




Date: 17 May 2018 | Source: BBC

More UK News

Cancer patient feels 'privileged to be alive' after NHS trial treatment

Taking part in clinical trials can bring enormous benefits, but few people are signing u

Poor white schools 'destroyed' by rankings

Exam league tables are stigmatising white working-class schools, head teachers say

How many £1m-plus homes are sold near you?

Sales of homes for more than £1m have hit a new high. See how many were sold near you in the last de..

SNP to launch growth report on economics of independence

The report on the economics of an independent Scotland will suggest incentives to attract skilled mi..

Breast screen error 'could have been spotted earlier'

A leading cancer expert says the problems date back to 2005, but no one was properly checking the da..

Prince William to visit Israel and Palestinian territories

The visit will be the first official tour of the region by a member of the Royal Family
View More

More Telford News

 Burglar steals sentimental items from pensioner's home

A burglar stole sentimental and irreplaceable items from a retired couple'..

 Man taken to hospital after being hit by falling tree in Telford

A man was taken to hospital with arm, head and pelvic injuries after being..

 A442 closed in Telford after four-vehicle crash

Four cars were involved in a crash which closed a Telford road this aftern..

 Telford child sex abuse panel to have three lay people

An independent group to be put in charge of planning and running an inquir..

 Marches investment sites announced by International Trade Secretary

Two investment locations in the Marches have been announced as part of a ne..

 Telford & Wrekin Council to commit £100,000 to tackle homelessness

Telford & Wrekin Council leader Shaun Davies is set to announce £100,0..
View More

Telford Businesses

Calendar Countdown

[[countdown here]]
[[countdown here]]

Upcoming Events in Telford

26 May 2018

Farm Shop and Arthur’s Farm Kitchen: Tues – Sat 9.30am – 5.00pm and Sun 10.00am – 4.00pm

Open Bank Holiday Mondays: 10.00am – 4.00pm


Free entry Some activities and events are chargeable

View Details

10 Jun 2018

8am - 6pm


Adult - £25.00

Children under 16 - Free

View Details

14 Jul 2018

8:30am - 6pm


Adult (16 - 64) - £15

Child (5 -15) - £5.00

Senior (65+) - £14.00

Family - £35

View Details

15 Jul 2018

11am - 4pm


Free Entry

View Details

04 Aug 2018

Practice starts at 4pm on Friday 3 August

Racing starts on Saturday 4 August at 12noon and Sunday 6 August at 10.30am


Free

View Details
View More