After penning a partnership with UK-based online retailer Ocado this May, Kroger positioned itself one step closer to a high-tech network of automated distribution facilities. This week, reports surfaced that Kroger and Ocado are in the process of identifying locations for the first of what will be at least 20 automated warehouse locations, with the latter’s Chief Financial Officer telling reporters that the companies were making headway.
“They’re making good progress identifying which particular sites and which particular cities. And we’re making good progress working on the details of the commercial relationship,” Duncan Tatton-Brown, CFO of Ocado, told reporters according to Reuters. “There’s a lot of work going on because even though the final deal (service agreement) isn’t agreed we are actually being paid. So nothing is holding us up.”
While Tatton-Brown didn’t name specific locations, Kroger is currently working to identify the first three sites for its new warehouses, which are expected to take two years to build.
According to Reuters, Ocado’s stock value has risen more than 200 percent over the last year—in large part thanks to major partnerships like the one with Kroger and other international retailers like Casino’s Monoprix.
What cities will draw Kroger’s and Ocado’s interest and how will the network of distribution facilities bolster their places in the market? Deli Market News will continue to keep you apprised of all grocery retail happenings.
