Ocado shares tumble following Kroger fulfilment centre closures

The online grocer said the move would reduce its revenue in financial year 2025/26 by around $50m (£38m), but it expects to see $250m (£190m) in compensation for the early closures.

The sites in Frederick, Maryland; Pleasant Prairie, Wisconsin; and Groveland, Florida, are due to close in January.

Ocado will still operate five sites for Kroger in Monroe, Dallas, Atlanta, Denver and Detroit, and continue to support Kroger with logistics operations.

The partnership between Ocado and US supermarket chain Kroger began in 2018 with an agreement to build 20 customer fulfilment centres.

Kroger said the decision to close three sites is expected to have a “positive effect” on ecommerce operating profit of around $400m (£304m) in 2026.

The company said: “This will be used to improve the customer experience through lower prices and better store conditions while also improving operating margins.”

Kroger said that it will monitor the remaining facilities’ performance.

Kroger chair and chief executive Ron Sargant said: “Ecommerce remains a core part of serving customers who want better value, wide selection and flexible ways to shop.

“We are taking decisive action to make shopping easier, offer faster delivery times, provide more options to our customers, and we expect to deliver profitable sales growth as a result.”

Ocado will continue to work with Kroger and expects “significant growth in the US market”.