Ocado Group is set to receive US$350m (£262m) from Kroger in compensation after its decision to scale back the number of automated distribution centres that it runs with the UK retailer.
In November, Ocado shares declined by more than 17% in one day as the US supermarket said that it would shut three of its automated warehouses which use Ocado 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.
Kroger has also ditched plans for an Ocado warehouse in North Carolina ahead of an opening in 2026.
Ocado had previously guided for $250m (£187m) in compensation for the closures when the news was unveiled last month.
Ocado said that it continued to work “closely” with the US retailer across its five live CFCs in Ohio, Georgia, Texas, Colorado and Michigan this morning (5 November).
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The group noted that Ocado teams remained “well-embedded” within this network.
The one-off $350m is due to be made in January.
Ocado Group CEO Tim Steiner said: “We continue to invest significant resources to support our partners at Kroger, and to help them build on our long-standing partnership.
“Ocado’s technology has evolved significantly to include both the new technologies that Kroger is currently deploying in its CFC network, as well as new fulfilment products that bring Ocado’s technology to a wider range of applications, including store-based automation to support ‘pick up’ and immediacy.”
He continued: “Our partners around the world have already deployed a wide range of these fulfilment technologies to great effect, enabling them to address a wide spectrum of geographies, population densities and online shopping missions, underpinned by Ocado’s world-leading expertise and R&D capabilities.
“We remain excited about the opportunity for Ocado’s evolving products in the US market.”
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