Ocado saw shares decline after its US partner Kroger pulled back on its robotic-warehouse deal.
Shares in the retailer slumped by over 17% yesterday (18 November) as Kroger said that it would shut three of its automated warehouses which use Ocado’s tech in January 2026, after they failed to meet “financial expectations”.
The retail and tech business said that the warehouse closures across Maryland, Florida and Wisconsin would lead to a £38m ($50m) reduction to its sales next year.
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Ocado expects to receive over £190.51m ($250m) in compensation in relation to the closures.
Kroger said it expected to be subject to impairment and related charges of roughly £1.98bn ($2.6bn) during the third quarter due to the axing of the sites.
The withdrawal comes after Kroger recently cautioned that it would take a “hard look” at its collaboration with Ocado under a site-by-site review.
Ocado initially partnered with Kroger in 2018, with the deal helping to propel the brand to the FTSE 100 due to the US supermarket’s scale.
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