Ocado signs tech deal with $122bn-turnover US grocery chain

Online supermarket Ocado has struck a deal with multi-billion dollar grocery chain Kroger.

The agreement will see the Hatfield-headquartered company’s order automation technology used in the US exclusively by Kroger.

The deal with the $122bn-turnover grocery chain, which will give Kroger a 5% stake in Ocado, is the fourth agreement announced in recent months that will see the company share its technology.

It also marks Ocado’s first foray across the Atlantic.

Laith Khalaf, a senior analyst at financial services firm Hargreaves Lansdown plc, commented: “Ocado is making great strides in the global grocery market and inflicting serious financial pain on those who have bet against it.

“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.

“The short sellers were hoping Ocado wouldn’t deliver on its international expansion plans. That position now looks like a badly busted flush.”

On the back of the deal, shares in Ocado leapt 60%.