Kroger going the way of the Jetsons with robots

Kroger going the way of the Jetsons with robots

One of our investing themes is focused on Disruptive Innovators, those companies that are utterly upending the way the world works. This week we saw more signals concerning the major changes taking place in an industry infamous for its brutally low margins, grocery stores…. and it entails robots.

Kroger (KR) is working on improving its operations, and defending itself against Tematica Research all-star Amazon (AMZN), which in turn ought to translate into better cost management by replacing people with robots – a trend that is occurring across a wide range of industries and geographies. A recent article on Reuters reported that

Through the deal with its largest partner, Ocado will ratchet up its delivery business by building robotically operated warehouses for Kroger in the United States, raising the stakes in the battle with Amazon.com Inc. The Kroger deal is Ocado’s biggest yet, exceeding all of the warehouses the firm has built or plans to build with Morrisons in Britain, Casino in France, Sobeys in Canada and ICA Group in Sweden. … Kroger is expected to order 20 CFCs over the first three years of the agreement. Ocado shares rose as much as 6 percent on Tuesday, taking gains over the last year to 195 percent.

Source: Kroger set to place warehouse order with partner Ocado