Kroger is increasing investment in UK online grocery store Ocado because it defends Amazon.com and other online threats to traditional grocers.
Kroger said on Thursday that the subscription agreement will allow it to access Ocado’s online ordering in the United States, automating delivery and door-to-door technology.
Kroger Co. and Ocado will choose three locations to develop new automated warehouse facilities in the United States. They will determine up to 20 in the first three years of the transaction.
After Amazon acquired Whole Foods for US$16 billion, the threat to traditional grocers became clear. Kroger also competes with Wal-Mart and Target.
Kroging’s headquarters in Cincinnati rose nearly 3%. Ocado Group Plc. It soared 50% in London.