Ocado gets $350 million payment after Kroger culls robotic warehouse network

Dec 5 (Reuters) – Ocado Group will receive a one-off $350 million cash payment from Kroger as the U.S. grocer decided to close three robotic warehouses and cancel a planned facility, the British online supermarket technology firm said on Friday.

The payment compensates Ocado for Kroger’s decision to shut three customer fulfilment centres (CFCs) in January 2026 and abandon plans for a Charlotte, North Carolina location that was slated to open next year, Ocado said in a statement.

Kroger’s decision to close three of the eight automated warehouses it built with Ocado and expand its ties with the likes of Instacart and DoorDash highlights the challenge the British firm faces from rapid delivery firms.

The $350 million payment, due in January, will largely replace future capacity fees from the affected sites, though the closures will still reduce Ocado’s fee revenue by about $50 million in fiscal 2026, with the company maintaining its goal of turning cash flow positive this year.

(Reporting by Yadarisa Shabong in Bengaluru; Editing by Nivedita Bhattacharjee)

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