Ocado is ramping up its partnership with US grocery giant Kroger with the roll out of new automated robotic arm technology.

Kroger has placed an order for a range of the new automated technology for both current and future Customer Fulfilment Centres (CFCs) across its network.

Innovations include On-Grid Robotic Pick (OGRP), a robotic arm that is installed directly on the grid allowing Ocado’s retail partners to stock up to 50,000 different products each, and Automated Frameload (AFL), which automates the loading of prepared customer orders onto delivery frames ready for dispatch.

The new technology will bring “new levels of efficiency and labour productivity to the Kroger Delivery network.”

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Ocado Group CEO Tim Steiner said: “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 labour cost and availability.

“Today marks another exciting milestone in our partnership with Kroger. Our current CFCs are already helping to deliver a game-changing quality of service to their customers across the USA. We are excited for these latest technologies to further enhance that proposition, as well as the efficiency of Kroger’s operations in live and future CFCs.”

Kroger’s investment follows Japanese retailer Aeon’s announcement that it would construct a third customer fulfilment centre (CFC) with Aeon to expand its grocery operations. It will come as welcome news to Ocado after its share price plummeted in the aftermath of Canadian supermarket Sobeys revealing it had paused the launch of its new warehouse in Vancouver as the pair agree to “end terms related to their mutual exclusivity”.