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Kroger Pays $350M to Ocado After Warehouse Closures

12/5/2025

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Story summary
  • Kroger Co. will pay Ocado Group $350 million after closing three automated warehouses and canceling a Charlotte facility.
  • The move follows Kroger Co.'s reassessment of its automated network, which fell short of expectations.
  • Ocado Group will incur about $50 million in revenue loss in fiscal 2026 from the closures.
  • Analysts say Kroger's pullback could hinder Ocado Group's U.S. growth, while Ocado pursues international partnerships and cash flow positivity in 2026.