Highlights

  • Ocado will receive a one-off USD 350m from Kroger due to CFC closures and cancellations.
  • Five live Kroger CFCs continue to operate with improvements in efficiency and availability.
  • ‘Re:imagined’ products and AutoFreezer rollout set to increase network capacity in 2026.

Ocado Group plc (LSE:OCDO) and Kroger have agreed on a one-off cash payment of USD 350m to Ocado, following Kroger’s decision to close three Customer Fulfilment Centers (CFCs) in January 2026. Additionally, Kroger will not proceed with the planned Charlotte, NC, CFC scheduled for 2026. The payment is primarily in lieu of future capacity fees for the affected sites.

The closure of the three live centers is expected to reduce Ocado’s fee revenue by approximately USD 50m in FY26.

Ongoing Operations Across Active CFCs
Ocado remains engaged across five live Kroger CFCs in Monroe (OH), Dallas (TX), Atlanta (GA), Denver (CO), and Detroit (MI). The company’s teams continue to support operational efficiency, volume growth, and increased same-day order availability within these centers, contributing to improved financial performance.

Technology Deployment and Network Expansion
The rollout of Ocado’s latest ‘Re:imagined’ fulfilment technologies is ongoing across Kroger’s active network. In Detroit, the initial site capacity has been expanded, with Kroger ordering additional capacity to be implemented in 2026. Ocado’s new AutoFreezer technology will be deployed for the first time at Kroger’s upcoming CFC in Phoenix (AZ).

Financial Outlook
Ocado confirms that its priority for FY26 is to achieve positive cash flow. This objective is expected to be driven by growth in live and new sites, alongside continued cost and capital discipline.

Share Price Snapshot
OCDO was trading GBX 211.0 per share as of 05 December 2025.