Finance
Ocado upbeat on US prospects despite Kroger setback
Published by Global Banking & Finance Review®
Posted on February 26, 2026
2 min readLast updated: February 26, 2026
Quick Summary
Ocado 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.
Ocado Targets New U.S. Deals After Kroger Closures, End of Exclusivity
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.
U.S. Outlook and Strategy
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.
End of Kroger Exclusivity
However, Steiner said he saw "an enormous opportunity" in the United States after Ocado's exclusivity agreement with Kroger ended.
Shares and Layoffs Reaction
"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'
Positive Early Retailer Talks
"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.
Focus on Store-Based Automation
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.
Pilots at Select U.S. Stores
"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.
CFC Openings in 2026
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.
Sites Slated for 2027–2028
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)
Key Takeaways
- •Ocado aims to sign new U.S. retail partners after its Kroger exclusivity ended in December 2025.
- •Early talks with U.S. grocers are positive, with most interest in store-based automation over large standalone CFCs.
- •Company to trial store-based automation at a few U.S. sites before broader rollout within a year.
- •Despite setbacks, CFC launches continue in 2026 (Busan, Tokyo, Phoenix) with further sites slated in 2027–2028 (Barcelona, Tokyo, Seoul).
- •Ocado announced about 1,000 layoffs; shares fell roughly 7% on results day amid continued scrutiny of its model.
Frequently Asked Questions about Ocado upbeat on US prospects despite Kroger setback
1What is the main topic?
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.
2Why did Kroger's move matter to Ocado?
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.
3What growth plans did Ocado outline?
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.
