Kroger boosted its investment in Ocado by 5 percent and said it will work exclusively with the web-based British grocery to boost online products in the U.S.
The move comes as e-commerce giant Amazon expands aggressively into the grocery business. The company acquired Whole Foods Market last year and launched a two-hour grocery delivery service through its Prime program. Rival Walmart, meanwhile, said Thursday that online grocery orders helped boost quarterly sales to $77.7 billion.
“We are actively creating a seamless digital experience for our customers,” said Kroger Chief Executive Officer Rodney McMullen. “Our partnership with Ocado will speed up our efforts to redefine the food and grocery customer experience — creating value for customers and shareholders alike.”
The two companies will launch three new warehouses in 2018 and agreed to a total of 20 new facilities as part of the investment.
Kroger’s stock rose 2.37 percent to $25.53 on Thursday. The company increased its net sales 12 percent to $31 billion for the quarter that ended on Feb. 3.
