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Ocado Gets $350 Million From Kroger for Warehouse Closures

On Friday, Ocado Group Plc said Kroger Co. will pay a one-time $350 million in January after closing three automated warehouses and scaling back its rollout.
The Kroger–Ocado partnership began in 2018 with plans for 20 customer fulfilment centres but has opened eight so far, and Kroger reviewed its automation use earlier this year, taking a $2.6 billion impairment.
Five sites will continue operating for Ocado Group Plc in Monroe, Dallas, Atlanta, Denver and Detroit, with a sixth in Phoenix, Arizona due next year.
Investors saw shares rebound as much as 16% in early trading after Kroger agreed to a $350 million payment, impacting Ocado Group Plc's fee revenues by about $50 million.
Amid setbacks, Ocado Group Plc reaffirmed its priority of turning cash flow positive during the 2026 financial year as its technology evolved to include store-based automation and new fulfilment products, with Kroger exclusivity remaining unclear.

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20 Articles

U.S. News

Lean Left

Ocado to Receive $350 Million Payout as Kroger Shuts Robotic Warehouses

18 hours ago·New York, United States

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Seeking Alpha

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Kroger to pay Ocado $350M for warehouse closures

18 hours ago·United States

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Transport Topics

Reposted by

Bloomberg

Center

Ocado Gets $350 Million From Kroger for Warehouse Closures

Ocado Group will receive a one-time cash payment of $350 million from Kroger, more than previously announced, after the U.S. grocer decided to close three automated warehouses.

19 hours ago

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grocerydive.com

Center

Kroger cancels plans for additional CFC, will pay $350M to Ocado

The fulfillment center cancellation — along with the closure of a spoke facility in Tennessee — expands the grocer’s pullback of its e-commerce network.

22 hours ago

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Evening Standard

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The Independent

Center

Ocado set for £262m compensation payout from Kroger after US warehouse closures

The retail tech firm was dealt a blow last month after Kroger said it would shut three warehouses and scrap a planned site in North Carolina.

1 day ago·London, United Kingdom

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Financial Post

Lean Right

Ocado Gets $350 Million Payment From Kroger for Site Closures

(Bloomberg) — Ocado Group Plc will receive a one-time cash payment of $350 million from Kroger Co., more than previously announced, after the US grocer decided to close three automated warehouses and scaled back plans for a wider rollout.

1 day ago·Canada

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