Ocado landed a new robot tech deal

Ocado Group (LSE:OCDO) shares started the week on the front foot, up 10%, with the news of a new technology partnership – as the grocer-come-automations-specialist inked a deal with American supermarket chain Kroger.

The London-listed firm, which in the UK is partnered with Waitrose, will now supply its order automation technologies to Kroger customer fulfillment centers.

It will include Ocado's ‘on-grid’ robotic pick service, robotic arms for packing groceries into bags, and automated frameload systems for dispatching orders.

All these technologies enable the automated picking and packing of online customer orders, and reduces the number of warehouse staff and the timelines needed to fulfil grocery orders.

"We are delivering a step-change in warehouse automation and new levels of efficiency to our partners as global supply chains are under significant pressure to manage higher volumes and greater complexity, as well as challenges in labor cost and availability,” Ocado chief executive Tim Steiner said in a statement.

The move comes after Ocado successfully implemented similar technologies with Japanese retailer Aeon.

In London, Ocado shares climbed more than 37p, or 9.97%, to trade at 415.8p.