Ocado said on Monday that its US partner Kroger had placed an order for a wide range of new automated technologies to roll out in warehouses across its network.
The British online retailer Ocado is also a technology group.
It is known for its robotic warehouses, which the company calls customer fulfilment centres (CFCs).
The order is a boost for Ocado after it said last month that its Canadian partner Sobeys had paused the opening of a fourth CFC, prompting a slump in Ocado shares.
Ocado said Kroger will implement its latest technologies across multiple CFCs in its live network.
These will include On-Grid Robotic Pick (OGRP) and Automated Frameload (AFL), as well as future CFCs.
Ocado did not disclose the value of the order from Kroger.
OGRP is a robotic arm that is installed directly on a warehouse’s grid. It deposits groceries next to the robot arms to be packed into customer bags.
At full capacity, OGRP can pick more than 70% of an extensive online grocery range, Ocado said.
AFL automates the most physically demanding job in the warehouse – loading prepared customer orders onto delivery frames ready for dispatch.
Ocado said both technologies will bring new levels of efficiency and labour productivity to Kroger’s delivery network.
Last week, shares in Ocado partially recovered after the group raised its annual guidance and chief executive Tim Steiner said investors should not lose confidence in its model, noting the global channel shift to online had resumed.
The stock is down 45% year-on-year.
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