Retailer tops Amazon for grocery delivery
Retailer tops Amazon for grocery delivery
Delivery of fresh foods remains a challenge in the United States. It is estimated that Americans buy about 2 percent of their food online, compared to about 6 percent in the United Kingdom. In recent years Amazon and Walmart have invested billions in e-commerce. Kroger has joined the party and is now working with the U.K. online supermarket Ocado.
According to the Wall Street Journal, “Ocado has invested heavily in the robotics and software necessary to automate fresh-food orders in its U.K. business. In its flagship warehouse in Andover, South East England, robots constantly shuffle a ‘hive’ of stacked boxes to expose the right groceries for human pickers to bag on behalf of customers.”
The Journal reported that Ocado is now focused on selling this technology outside its home market and the plan is to build 20 automated warehouses for Kroger on the course of three years.
“Kroger plans to use the warehouses not just for home delivery, as Ocado uses them in the U.K., but also to fulfill online orders for collection in stores, and even to deliver some items to its regular store network,” according to the WSJ.
Kroger’s agreement with Ocado barred the U.K. company from sharing its technology with other U.S. retailers, the Journal added.