Ocado Group has announced that, through its partnership with Kroger, it will close three Customer Fulfilment Centres (CFC) in its live network in the US.
These are in Frederick (MD), Pleasant Prairie (WI), and Groveland (FL), and are expected to close in January 2026.
Ocado also noted Kroger’s statement that in geographies where it 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.
The partnership will continue to operate CFCs in Monroe (OH), Dallas (TX), Atlanta (GA), Denver (CO), and Detroit (MI).
Ocado will expect to receive compensation for fees related to the early closure of these three sites of more than US$250m (c. £190m).
The closure of the three sites will reduce Ocado’s fee revenue in FY26 by c$50m (c. £38m).
Ocado also stated that it will continue to support Kroger in optimising logistics operations and drive profitable volume growth in these remaining sites.
This includes with constructive ongoing discussions around further use of Ocado’s technology to support Kroger.
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.
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