Ocado says Kroger CFC closures to dent revenues, shares slide
By Michele Maatouk
Date: Tuesday 18 Nov 2025
(Sharecast News) - Ocado shares tumbled on Tuesday after it said the closure of three customer fulfilment centres in US partner Kroger's live network will reduce its FY26 revenues by around $50m (£38m).
Kroger said in a statement that it plans to close fulfilment centres in Frederick (Maryland), Pleasant Prairie (Wisconsin), and Groveland (Florida), in January 2026.
The US retailer also said: "In geographies where Kroger sees higher density of demand, the company will continue to take advantage of automated customer fulfilment to increase customer engagement, capacity and improve productivity and profitability.
"As part of its comprehensive hybrid fulfilment network, Kroger will also pilot capital-light, store-based automation in high-volume geographies to improve fulfilment capabilities and elevate the in-store customer experience. The adjustments to the network combined with increased store-based fulfilment will contribute to ROIC improvement."
Ocado said that it and Kroger will continue to operate CFCs in Monroe (Ohio), Dallas (Texas), Atlanta (Georgia), Denver (Colorado), and Detroit (Michigan).
"Ocado continues to support Kroger to optimise logistics operations and drive profitable volume growth in these remaining sites, with constructive ongoing discussions around further use of Ocado's technology to support Kroger," it said. "Ocado continues to engage with Kroger on these and other matters, and expects significant growth in the US market, both with CFCs and Store Based Automation."
Ocado expects to receive compensation of more than $250m for fees related to the early closure of the three CFCs.
At 1435 GMT, the shares were down 14.2% at 186.84p.
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