Under the deal, Kroger will use Ocado’s technology that automates online grocery orders and the British firm will construct robotically operated warehouses in the US. The US supermarket chain will also take a 5% stake in Ocado.
Ocado said the terms of the deal include how Kroger will order warehouses, or what it calls customer fulfilment centres (CFCs), and the basis on which it will develop and operate the sites in the US.
Kroger is expected to order 20 CFCs over the first three years of the agreement. The first three CFCs are expected to be ordered by the end of 2018 at an estimated net outflow of £90mln to Ocado.
Ocado will install and maintain mechanical handling equipment for the CFCs, which the company aims to go live within about two years of each order being placed.
Ocado expects the earnings impact of the deal to be neutral in the fiscal year 2018.