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Home > Finance > UK's Ocado says Canadian partner to close warehouse in latest blow

UK's Ocado says Canadian partner to close warehouse in latest blow

Published by Global Banking and Finance Review

Posted on January 29, 2026

1 min read

Last updated: January 29, 2026

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Quick Summary

Ocado's partner Sobeys will close its Calgary warehouse, impacting Ocado's revenue and business model. Compensation of £18 million expected.

Ocado Faces Setback as Canadian Partner Closes Calgary Warehouse

Impact of Sobeys' Warehouse Closure

Jan 29 (Reuters) - Ocado, the British technology and online grocery group, said on Thursday its Canadian supermarket partner Sobeys has decided to close its robotic warehouse in Calgary, dealing another blow to the Ocado business model.

Details of the Closure

The planned closure of the Calgary customer fulfilment centre (CFC) was blamed on the Alberta grocery e-commerce market's size and the rate of expansion being slower than originally anticipated.

Financial Implications for Ocado

It follows last year's move by U.S. grocer Kroger, Ocado's biggest partner, to close three automated warehouses, which sent Ocado's shares down 17%.

Future of Other CFCs

Ocado said Sobeys two CFCs in the Greater Toronto and Montreal areas will remain open. A planned CFC in the Vancouver area remains "paused".

Ocado expects to receive compensation during its current financial year of 18 million pounds ($25 million) for the closure of the Calgary CFC.

It expects the closure to reduce fee revenue by 7 million pounds in its 2025/26 year.

($1 = 0.7224 pounds)

(Reporting by Ankita Bora in Bengaluru and James Davey in London; Editing by Rashmi Aich and Sarah Young)

Key Takeaways

•Sobeys to close Ocado's Calgary warehouse.
•Closure due to slow e-commerce growth in Alberta.
•Ocado to receive £18 million in compensation.
•Closure to reduce fee revenue by £7 million in 2025/26.
•Other Sobeys CFCs in Toronto and Montreal remain open.

Frequently Asked Questions about UK's Ocado says Canadian partner to close warehouse in latest blow

1What is a customer fulfilment centre (CFC)?

A customer fulfilment centre (CFC) is a facility where products are stored and processed for delivery to customers, often utilizing automation and technology to enhance efficiency.

2What is e-commerce?

E-commerce refers to the buying and selling of goods and services over the internet, allowing businesses to reach a wider audience and consumers to shop conveniently.

3What is a partnership in business?

A partnership in business is a formal arrangement where two or more parties agree to manage and operate a business together, sharing profits and responsibilities.

4What is investment compensation?

Investment compensation refers to the financial restitution or reimbursement provided to an investor when an investment does not perform as expected or incurs losses.

Impact of Sobeys' Warehouse Closure

Details of the Closure

The planned closure of the Calgary customer fulfilment centre (CFC) was blamed on the Alberta grocery e-commerce market's size and the rate of expansion being slower than originally anticipated.

Financial Implications for Ocado

It follows last year's move by U.S. grocer Kroger, Ocado's biggest partner, to close three automated warehouses, which sent Ocado's shares down 17%.

Future of Other CFCs

Ocado said Sobeys two CFCs in the Greater Toronto and Montreal areas will remain open. A planned CFC in the Vancouver area remains "paused".

Ocado expects to receive compensation during its current financial year of 18 million pounds ($25 million) for the closure of the Calgary CFC.

It expects the closure to reduce fee revenue by 7 million pounds in its 2025/26 year.

($1 = 0.7224 pounds)

(Reporting by Ankita Bora in Bengaluru and James Davey in London; Editing by Rashmi Aich and Sarah Young)

Frequently Asked Questions

1What is a customer fulfilment centre (CFC)?

A customer fulfilment centre (CFC) is a facility where products are stored and processed for delivery to customers, often utilizing automation and technology to enhance efficiency.

2What is e-commerce?

E-commerce refers to the buying and selling of goods and services over the internet, allowing businesses to reach a wider audience and consumers to shop conveniently.

3What is a partnership in business?

A partnership in business is a formal arrangement where two or more parties agree to manage and operate a business together, sharing profits and responsibilities.

4What is investment compensation?

Investment compensation refers to the financial restitution or reimbursement provided to an investor when an investment does not perform as expected or incurs losses.