Ocado Sees Promising Horizons with Kroger's E-Commerce Expansion

Ocado, a leading British online supermarket and tech enterprise, remains optimistic about its partnership with U.S. grocery giant Kroger, despite recent management changes. Ocado's CEO, Tim Steiner, expressed confidence in Kroger's ambition to expand their e-commerce reach.

In 2018, Ocado and Kroger had reached a landmark deal to construct robotic warehouses, aiming to enhance Kroger's delivery operations in the United States. Although the agreement targeted 20 fulfillment centers, only eight are currently functional, with two more expected by early fiscal year 2025-26.

Steiner, having discussed the expansion plans with Kroger's interim CEO Ron Sargent and Chief Digital Officer Yael Cosset, emphasized the significant opportunity the U.S. market represents. Despite the promising discussions, a timeline for reaching the 20-site goal remains undetermined, and potential changes to deal exclusivity remain undisclosed.

(With inputs from agencies.)