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Kroger Cancels Charlotte Ocado Warehouse, Paying $350 Million in Compensation

The payout reflects Kroger’s pivot to store-based online fulfillment after automated hubs fell short of expectations.

Overview

  • Ocado said Kroger will make a one-off $350 million cash payment in January as the partnership scales back automated facilities.
  • The Charlotte, North Carolina site—one of two slated for 2026—has been dropped following last month’s decision to shut three Ocado-run warehouses in January.
  • Ocado will continue operating five U.S. centers for Kroger in Monroe, Dallas, Atlanta, Denver and Detroit while providing logistics support.
  • Ocado warned its next financial year technology and services fees will be about $50 million lower due to the closures and cancellation.
  • The original plan envisioned roughly 20 U.S. sites but only eight opened, and Ocado shares rose about 6% after the compensation announcement.