Ocado partner Kroger orders new automated technologies

LONDON (Reuters) - British online supermarket and technology group Ocado said on Monday its U.S. partner Kroger had placed an order for a wide range of new automated technologies to roll out in warehouses across its network.

The order is a boost for Ocado after it said last month that its Canadian supermarket partner Sobeys had paused the opening of a fourth robotic warehouse, prompting a slump in Ocado shares.

Ocado said Kroger will implement its latest technologies, such as On-Grid Robotic Pick (OGRP) and Automated Frameload (AFL), across multiple warehouses, or customer fulfilment centres (CFCs) as Ocado calls them, in its live network, as well as future CFCs.

Ocado did not put a value on the order from Kroger. 

OGRP is a robotic arm that is installed directly on a warehouse’s grid. Robots operating on the grid deposit 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 - the loading of 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 CEO 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.

(Reporting by James Davey; Editing by Kate Holton and Sarah Young)