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Kroger plans automated warehouses through new deal

Kroger could open up to 20 automated warehouses in three years as part of a new deal with a grocery technology company.

The Cincinnati-based grocery giant has an agreement to buy a stake in Ocado, an online grocer based in the U.K., and license technology to be used for automated warehouses and delivering food to customers doors, according to Bloomberg.

MORE: Kroger CEO talks grocery industry, Target merger rumors

The news could help Kroger’s competitiveness with Wal-Mart, which is expanding grocery home-delivery, as well as with Amazon, which acquired of Whole Foods last year.

Bloomberg reported Kroger and Ocado are seeking sites for three automated distribution centers this year and could open up to 20 in the next three years.

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Ocado’s technology helps with the logistics of grocery delivery, which involves keeping temperature-sensitive food from spoiling. The company’s software helps trucks take the best route on food deliveries.

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