Kroger, which had sales of $122 billion in its last fiscal year, will take a 5 percent stake in the British online delivery firm as part of the agreement.
Kroger Chief Financial Officer Michael Schlotman told CNBC's "Squawk Box" Thursday that the deal offered a number of benefits.
"It is not just online selling to customers, they have capabilities that will also help us provide piece pick items to our stores so that will help our logistics," he said.
Ocado is to work with Kroger to identify and roll-out up to 20 robotic warehouses across the U.S. over the first three years of the agreement. Although automated, each warehouse will employ around 600 people each.
Schlotman said it will be a "relatively slow" process with each site taking around two years as the firms identify locations, secure permits and then build the warehouses. Following that, Ocado will install the robotic technology.