financetom
Business
financetom
/
Business
/
Despite slowdown Ocado upbeat on long-term Kroger site roll-out
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Despite slowdown Ocado upbeat on long-term Kroger site roll-out
Feb 27, 2025 5:14 AM

LONDON (Reuters) - Ocado ( OCDGF ), the British online supermarket and technology group, is confident its U.S. grocery partner Kroger ( KR ) will eventually open "a significant number" of automated warehouses despite a slowdown in the roll-out of sites, Ocado's ( OCDGF ) boss said.

Ocado ( OCDGF ) struck a deal with Kroger ( KR ) in 2018 to help the U.S firm ratchet-up its delivery business with the construction of robotic warehouses.

The initial deal saw Kroger ( KR ) identify 20 sites to build automated warehouses, or customer fulfilment centres (CFCs) as Ocado ( OCDGF ) calls them, in the United States, making the group Ocado's ( OCDGF ) most important partner.

However, so far only eight sites have gone live, with a further two now not due to open in Charlotte and Phoenix until early in Ocado's ( OCDGF ) 2025-26 financial year as additional freezer technology is added to the sites.

"I expect in the long term we will see a significant number of warehouses and modules live in the U.S.," Ocado ( OCDGF ) CEO Tim Steiner told reporters on Thursday after the group reported annual results that sent its shares sharply lower.

"I still believe that the U.S. is an enormous opportunity for the group and at some point in the future we'll look back and go 'wasn't it challenging for a few years' and we'll see enormous growth," he said.

Steiner said the U.S. consumer was increasingly attracted to online grocery delivery and noted that in markets where Kroger ( KR ) had opened sites it had seen strong sales growth despite limited marketing.

The CEO also noted that the exclusivity element of its deal with Kroger ( KR ) is conditional on growth.

"If we found ourselves not able to do that, we obviously would be able to operate with other partners."

Steiner also said that to reduce costs Ocado ( OCDGF ) would cut some jobs, mainly in research and development areas. He said the job losses would be a "low single-digit percentage" of a global workforce of about 20,000.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Gilead Sciences Says Trodelvy Met Primary Endpoint in Phase 3 Breast Cancer Trial
Gilead Sciences Says Trodelvy Met Primary Endpoint in Phase 3 Breast Cancer Trial
May 26, 2025
09:00 AM EDT, 05/23/2025 (MT Newswires) -- Gilead Sciences ( GILD ) said Friday that its experimental drug, trodelvy, met the primary endpoint in a phase 3 trial, showing a statistically significant and clinically meaningful improvement in progression-free survival over chemotherapy in patients with a type of breast cancer who are not candidates for immunotherapy. The company said the drug's...
Tesla Set to Start New Growth Era in AI, Autonomous Tech, Wedbush Says
Tesla Set to Start New Growth Era in AI, Autonomous Tech, Wedbush Says
May 26, 2025
09:01 AM EDT, 05/23/2025 (MT Newswires) -- Tesla (TSLA) is now on the verge of a golden age of autonomous growth after CEO and founder Elon Musk stepped back from his role in the US Department of Government Efficiency and recommitted to leading the company, Wedbush said in a Friday note. The company is set to begin its next era...
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Aug 17, 2025
SYDNEY, Aug 18 (Reuters) - Google agreed on Monday to pay a A$55 million ($35.8 million) fine in Australia after the consumer watchdog found it had hurt competition by paying the country's two largest telcos to pre-install its search application on Android phones, excluding rival search engines. The fine extends a bumpy period for the Alphabet-owned internet giant in Australia,...
Curaleaf Opens Medical Cannabis Dispensary in Punta Gorda, Florida
Curaleaf Opens Medical Cannabis Dispensary in Punta Gorda, Florida
May 26, 2025
09:02 AM EDT, 05/23/2025 (MT Newswires) -- Curaleaf Holdings ( CURLF ) , a provider of cannabis products, on Friday said it opened a new medical cannabis dispensary in Punta Gorda, Florida. Punta Gorda will be the company's 67th store in Florida, bringing its nationwide total to 153. It added that the dispensary will begin welcoming medical patients on Friday,...
Copyright 2023-2026 - www.financetom.com All Rights Reserved