October 30, 2018 / 7:24 AM / 9 months ago

Ocado and Kroger agree service and operational terms to May deal

LONDON, Oct 30 (Reuters) - British online grocer Ocado and U.S. supermarket chain Kroger Co have agreed service and operational terms in relation to the deal they struck in May.

As a result of the deal, Ocado will ratchet up its delivery business with the construction of robotically operated warehouses, upping the ante in the battle with Amazon.com Inc .

Ocado said on Tuesday the agreement includes how Kroger will order warehouses, or what Ocado calls Customer Fulfilment Centres (CFCs), and the basis on which Ocado will develop and operate those sites in the United States.

Kroger is expected to order 20 CFCs over the first three years of the agreement, and order the first three CFCs by the end of 2018.

Ocado expects the earnings impact of the deal to be neutral in full year 2018. (Reporting by James Davey; editing by Sarah Young)

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