Finance
Ocado Upbeat on US Prospects Despite Kroger Setback
Published by Global Banking & Finance Review®
Posted on February 26, 2026
2 min readLast updated: April 2, 2026
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Published by Global Banking & Finance Review®
Posted on February 26, 2026
2 min readLast updated: April 2, 2026
Add as preferred source on GoogleOcado sees strong US expansion potential after Kroger shut three robotic sites and exclusivity ended in Dec 2025. CEO Tim Steiner says retailers favor store-based automation, with new CFC launches in 2026–2028 aimed at reviving growth.
By James Davey
LONDON, Feb 26 (Reuters) - British technology and online grocery group Ocado is confident it can secure new U.S. deals even after key partner Kroger moved last year to close three of its robotic distribution centres, Ocado CEO Tim Steiner said on Thursday.
Kroger's decision raised fresh questions over the viability of Ocado's business model, particularly for partners whose customers are spread beyond dense urban areas.
However, Steiner said he saw "an enormous opportunity" in the United States after Ocado's exclusivity agreement with Kroger ended.
"We are confident," he told Reuters after Ocado published annual results and announced 1,000 layoffs, sending its shares 7% lower on the day and extending a year-on-year slump to 34%.
EARLY CONVERSATIONS 'POSITIVE'
"We've only been allowed to talk to those retailers now since the end of the year, but the early conversations are positive," he said.
Steiner said potential new clients were "most excited" about Ocado's new store-based automation technology rather than its traditional standalone automated warehouses, or customer fulfilment centres (CFCs) as it calls them.
"We have the most advanced product development in this space," he said. Ocado was looking to test the store-based automation at a small number of U.S. sites before a material roll-out in a year's time.
Ocado is still opening new CFCs. Three are due to go live this year in Busan, South Korea with partner Lotte Shopping, in Tokyo with Aeon, and in Phoenix with Kroger.
Three openings for 2027 and 2028 are slated in Barcelona with Bon Preu, in Tokyo, and Seoul.
(Reporting by James Davey, editing by Andrei Khalip)
Ocado’s strategy to grow in the United States after Kroger closed three Ocado-powered sites and their exclusivity ended, with a pivot toward store-based automation.
Kroger’s closures raised doubts about Ocado’s large CFC model in lower-density markets and cut expected fee revenue, but Ocado remains confident in winning new U.S. partners.
Ocado plans U.S. store-based automation pilots ahead of wider rollout and continues global CFC openings in 2026–2028, while executing cost cuts and refocusing its tech portfolio.
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