SCD: Kroger has reportedly slowed Ocado robotic tech rollout

SUPPLY CHAIN DIVE reports:

Dive Brief:

– Kroger has decelerated development of the robotic customer fulfillment centers (CFCs) it is building with Ocado, but remains intent on expanding the network, according to a Tuesday report by Reuters.

– The supermarket chain continues to be optimistic about its partnership with the U.K.-based grocery automation company, but wants to be sure the CFCs perform “as well as they can before they roll out loads,” Ocado CEO Tim Steiner said, per the news report.

– The development follows recent comments by Kroger CEO Rodney McMullen indicating that the grocer is looking to its arrangement with Ocado to eventually turn its e-commerce business into a profit center.

Dive Insight:

When Kroger announced its deal with Ocado to construct automated fulfillment centers across the U.S. in 2018, the grocer projected that it would identify sites for as many as 20 of the facilities within three years…

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