Kroger announced a deal with UK based online-grocer Ocado to build 20 customer fulfillment centers. Grocery stores remain largely a brick and mortar business in the U.S. with online sales only accounting for 1.5% of the total U.S. grocery market. But even if online grocery sales never surpass 10%, it still means a more than 6 fold increase in sales.
The FT has more.
But Americans are warming to grocery delivery. Walmart, the largest US grocer, reported a 33 per cent rise in online sales in its first quarter and said it was on track for a 40 per cent increase in the full year.
Rodney McMullen, Kroger chief executive, said the partnership would speed up the company’s efforts to “redefine the food and grocery customer experience” and described the automation and route-mapping systems that Ocado had developed as “remarkable”.
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