Ocado (LON:OCDO) shares jumped over 50 percent in early trading on Thursday, after the online grocery retailer confirmed a deal with US giant Kroger.
Ocado’s technology will be used by Kroger in the US, where they have annual sales of $122 billion, with the US group taking a 5 percent stake in Ocado.
Ocado has reached four similar agreements over the last six months, with Kroger being its first in the US. Ocado will build around 20 robotic warehouses in the US, and Kroger has also acquired use of its online shopping and logistics technology.
Ocado chief executive Tim Steiner said: “As we work through the terms of the services agreement with Kroger in the coming months, we will be preparing the business for a transformative relationship which will reshape the food retailing industry in the US in the years to come.”
Ocado has been at the forefront of technological development in the grocery industry, trialling robot deliveries and packing technology for warehouses.
Shares in Ocado (LON:OCDO) are currently up 41 percent at 780.40 (0933GMT).
