Ocado Group has announced that it will receive a one-off cash payment of $350m (£262m) from Kroger after the US retailer decided to close three customer fulfilment centres (CFCs) in January 2026 and halt work on a planned site in Charlotte, North Carolina.
The payment compensates Ocado for the impact on future capacity fees. Ocado and Kroger will continue to operate five active CFCs in Monroe, Dallas, Atlanta, Denver and Detroit.
According to Ocado, its teams remain embedded across the network, supporting operational efficiency, volume growth and improvements in same-day availability.
Additionally, the rollout of Ocado’s Re:imagined technologies continues across Kroger’s US network.
In Detroit, Kroger has expanded the site’s initial capacity and ordered additional capacity for 2026.
Ocado’s AutoFreezer technology will also be used for the first time at the upcoming CFC in Phoenix.
The payment will be received in January 2026. Ocado expects the closure of the three sites to reduce its fee revenue by about $50m (£37.46m) in the 2026 financial year.
The company reiterated its aim of delivering positive cash flow in FY26, supported by growth at existing and new sites and continued cost discipline.
Tim Steiner, chief executive of Ocado Group, said: “We continue to invest significant resources to support our partners at Kroger, and to help them build on our longstanding partnership. Ocado’s technology has evolved significantly to include both the new technologies that Kroger is currently deploying in its CFC network, as well as new fulfilment products that bring Ocado’s technology to a wider range of applications, including Store Based Automation to support ‘pick up’ and immediacy.
“Our partners around the world have already deployed a wide range of these fulfilment technologies to great effect, enabling them to address a wide spectrum of geographies, population densities and online shopping missions, underpinned by Ocado’s world leading expertise and R&D capabilities. We remain excited about the opportunity for Ocado’s evolving products in the US market.”
