克罗格将向Ocado支付3.5亿美元以关闭仓库

Kroger (KR) will pay online grocer and automation platform provider Ocado $350M in cash following the grocer’s decision to close three Ocado-automated warehouses and adjust its e-commerce strategy.

The payout marks a significant shift from the companies' original 2018 partnership. To capitalize on the growth of e-commerce and improve its fulfillment capabilities, Kroger (KR) partnered with UK-based Ocado to build 20 state-of-the-art, automated customer fulfillment centers (CFC) across the U.S.

But after opening just eight facilities, Kroger (KR) conceded that the substantial investment failed to pay off as the Ocado-tooled facilities struggled with their inconvenient locations, lack of volume, and failure to deliver the speed that U.S. consumers were accustomed to from Amazon (AMZN) and Walmart (WMT).

Additionally, with competitors increasing their scale and speed, Kroger’s (KR) fulfillment centers were unable to compete effectively to justify the investment.

In 2023, Kroger (KR) suspended further development of Ocado-tooled CFCs as the existing facilities “did not meet the benchmarks set for success.” By September, the grocer made the decision to shutter the three existing facilities, taking a $2.6B impairment charge to shift to its network of stores to complete online orders, expanding its relationships with Instacart (CART), DoorDash (DASH), and Uber Eats (UBER).

Ocado said it will continue to work with Kroger (KR) on the five existing sites, with another expected to open in 2026 in Phoenix, Arizona. The Charlotte, North Carolina CFC has been cancelled.

Shares of Ocado Group were as much as 10% higher on the London exchange, while Kroger (KR) opened fractionally lower on Friday, marking its third day in the red.