Overview
- Kroger said three automated customer fulfilment centres will close in January, and Ocado forecast about $50 million less fee revenue next year.
- Ocado said it expects more than $250 million in compensation linked to the early closure of the sites.
- Ocado shares fell sharply on the news, with reports indicating losses of roughly one fifth in Tuesday trading.
- The 2018 partnership envisioned 20 U.S. sites, yet only eight have opened so far, underscoring a slower-than-planned rollout.
- Ocado will continue to operate five Kroger sites in Monroe, Dallas, Atlanta, Denver and Detroit while supporting logistics at remaining locations.