A partnership agreement between Ocado Group plc and The Kroger Co. has been announced.

Ocado has signed a partnership agreement with Kroger under which Ocado’s technology will be used in the US exclusively by Kroger for grocery and other food distribution related activities.

Ocado is reported to be one of the world’s largest dedicated online grocery retailers, operating its own grocery and general merchandise retail businesses under Ocado.com.

Kroger is said to be one of the largest grocery retailers, and market leaders of the US, and is dedicated to its Purpose: to Feed the Human Spirit.

Its serves nine million customers daily through a digital shopping experience, aiming to create a ‘#ZeroHungerZeroWaste’ community by 2025.

Tim Steiner, CEO of Ocado, said: “Ocado’s unique, proprietary and industry-leading technology is set to transform the shopping experience of consumers around the world.

The opportunity to partner with Kroger to transform the way in which US customers buy grocery represents a huge opportunity to redefine the grocery experience of Kroger’s customers and create value for the stakeholders of both Kroger and Ocado.”

Rodney McMullen, chairman and CEO of Kroger, added: “We see Ocado as an innovative, exciting and transformative partnership in pursuit of our Restock Kroger vision, to serve America through food inspiration and uplift.”

Kroger and Ocado are already working to identify the first three sites in 2018 for development of new, automated warehouse facilities in the US, and will identify up to a total of 20 over the first three years of the agreement.

In the event of a failure to commit to the target capacity, it has been agreed that Kroger will pay compensation to Ocado.