// Ocado shares up 10.9% after talks of a merger with US grocery giant Kroger with rival Albertsons
// Kroger is Ocado’s biggest client, which picks and packs grocery orders ready for delivery
Ocado shares were up over 10% on Thursday after talks of a merger between US grocery giant Kroger and rival Albertsons could benefit the British online supermarket.
Kroger is Ocado’s biggest client, which picks and packs grocery orders ready for delivery.
News of its potential tie-up with Albertsons, its biggest rival, sent Ocado shares up 10.9%.
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Ocado struck a deal with Kroger in 2018 to help it to ramp up its delivery business using the UK firm’s robotic warehouses.
The potential deal between Kroger and Albertsons would create a grocery giant worth £41 billion and could open the door for a huge expansion of Ocado’s dealings in the US.
The news comes after Ocado cut its outlook despite its sales rising as the cost-of-living crisis led to shoppers seeking more value online.
For the 13 weeks to 28 August, Ocado’s sales were up 2.7% to £532 million compared with the same quarter last year.
While orders have grown, consumers are shopping smaller baskets and seeking value-for-money items as they respond to inflationary pressures.