From the supermarket shares rose almost 45%, on Thursday – adding £ 1.6 bn to the cost of the company after the online grocer has introduced a powerful push in the U.S. market to provide technology for the us grocery giant Kroger, the world’s third largest retailer.
Tim Steiner, founder and chief Executive of the UK online grocer, said it was “transformational” deal in which both companies will build 20 automated warehouses throughout the United States over the next three years.
Supermarket uses £150 million pounds from shareholders to the warehouse robots
Kroger had approximately 2,800 stores in 35 U.S. States and annual sales of $122bn in 2017. It will take another 5% stake in the supermarket, as part of the deal.
At one point, the supermarket shares jumped by 81% to £10 and despite slipping from this level they closed 245.2 p better at 797.2, business valuation at £5.3 billion, This means that the company is worth more than marks and Spencer, which is estimated at £4.8 billion.
The value of personal interest in Steiner, the company has grown in value by more than £60m on the stock market is closed. His shares are worth about 200 million
As from the supermarket stacks up against its rivals
At its current share price, the supermarket will surge in the FTSE 100 largest British companies, which will have as its members the following changes at 30 may.
“Unique supermarket is patented and industry-leading technology will change the shopping experience of consumers worldwide,” said Steiner.
“As we work under the terms of the service contract with Kroger in the coming months, we will prepare the business for transformational relationships that affect the food retail industry in the United States in the coming years.”
Rodney McMullen, Chairman and CEO of Kroger, said that the partnership would “accelerate the work on the revision of the grocery customer experience”.
The supermarket provides its technology to Kroger in the United States on an exclusive basis and the deal is the latest foray into international markets for the group in the UK. He struck a partnership with Groupe casino in France, Sobeys in Canada and the ICA group in Sweden. Supermarket also works in partnership with morrisons in the UK.
Subscribe for daily business today email or follow the business Guardian on Twitter @BusinessDesk
Laith Khalaf, senior analyst at hargreaves lansdown, says that as one of the most shorted stocks in the UK, where investors expect that the company’s share price will fall – supermarket deal with kroger was a “poke in the eye” for hedge funds who have bet against him.
Supermarket to roll out a c3po-style robot to lend a hand in the warehouses
“From the supermarket is making great strides in the world food market and have caused serious financial pain for those who have bet against him,” said Khalaf.
“The company is known in the UK as an online supermarket but is only the tip of the iceberg, as from the supermarket-it is primarily the technology and organization of the firm with the potential of a license for its services grocery stores around the world.
“Short sellers were hoping that the supermarket does not comply with its international expansion plans. That position now looks like a badly busted flush”.
Supermarket was founded in 2000 by three former bankers from Goldman Sachs, including Steiner, but did not report a profit until 2015. The other two founders were Jonathan faiman, who left the company in 2010, and Jason Gissing, who left in 2014 to work on environmental and social causes.
John Lewis was one of the original patrons of the supermarket is investing £68m and 29% of the shares. However, the relationship between the two companies is becoming increasingly unmanageable. Network – part of the John Lewis partnership continues to sell its products through the online service supermarket, but the supermarket chain also operates its own delivery Service for orders placed on Waitrose.com.
Supermarket floated on the stock market in 2010 at 180p per share. The Directors hoped to sell the shares at between 200p and 275p, but was forced to reduce stock prices as they tried to find investors.
Whether wild, head of equity strategy at interactive investor, said the supermarket was “stock Bain Marie” for many years. “Only last November when he struck a long-awaited international Internet in France to change the attitude. It’s [Kroger] is a big day for the supermarket.”