REG - Ocado Group PLC - Update on Kroger Partnership

OcadoAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251205:nRSE3582Ka&default-theme=true

RNS Number : 3582K  Ocado Group PLC  05 December 2025

THIS ANNOUNCEMENT RELATES TO THE DISCLOSURE OF INFORMATION THAT QUALIFIED OR
MAY HAVE QUALIFIED AS INSIDE INFORMATION WITHIN THE MEANING OF ARTICLE 7(1) OF
THE MARKET ABUSE REGULATION (EU) 596/2014, AS AMENDED (AND INCLUDING AS IT
FORMS PART OF UNITED KINGDOM DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018, AS AMENDED).

 

Ocado Group plc

5 December 2025

 

Ocado Group plc

Update on Kroger Partnership

 

Ocado Group plc ("Ocado" or the "Company") and Kroger have agreed a one-off
cash payment of $350m to compensate Ocado following Kroger's recent decisions
to optimise its CFC network. This payment reflects Kroger's decision to close
three CFCs in January 2026, as well as a decision by Kroger not to proceed
with Charlotte (NC), one of the two planned CFCs due to go-live in 2026.

 

Ocado and Kroger continue to work closely together across the five live CFCs
in Monroe (OH), Dallas (TX), Atlanta (GA), Denver (CO), and Detroit (MI).
Ocado teams remain well-embedded within this network of CFCs, supporting
significant progress in operational efficiency, volume growth, and increasing
same day availability, resulting in a significant improvement in financial
performance.

 

The rollout of Ocado's latest 'Re:imagined' products continues across Kroger's
fulfilment network, enabling significant increases in productivity and network
capacity. In Detroit, we have expanded the initial capacity of the site, with
Kroger ordering further capacity to be utilised in 2026. Ocado's new
AutoFreezer technology will also feature for the first time in Kroger's
upcoming CFC in Phoenix (AZ).

 

Tim Steiner, CEO 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."

 

Expected financial impact:

 

Ocado and Kroger have agreed a one-off cash payment of $350m to Ocado to be
paid during January 2026, principally in lieu of future capacity fees for the
impacted CFCs. The closure of the three live sites will reduce Ocado's fee
revenue in FY26 by c.$50m.

 

Ocado reaffirms its priority of turning cash flow positive during FY26, driven
by continued growth in live and new sites, and underpinned by rigorous cost
and capital discipline.

 

Contacts

 

Tim Steiner, Chief Executive Officer on +44 (0)1707 228 000

Stephen Daintith, Chief Financial Officer on +44 (0)1707 228 000

Nick Coulter, VP of Group Capital Markets and FP&A, on +44 (0)1707 228 000

Jamie Kerr, Director of Communications, on +44 (0)1707 228 000

Lucy Legh Matt Denham, Jack Gault, Headland Consultancy -
ocadogroup@headlandconsultancy.com, on +44 (0)20 3805 4822

 

Person responsible for arranging the release of this announcement:

 

Mollie Stoker

Group General Counsel and Company Secretary

Ocado Group plc

Buildings One & Two, Trident Place, Mosquito Way,

Hatfield, Hertfordshire AL10 9UL

email: company.secretary@ocado.com (mailto:company.secretary@ocado.com)

 

Ocado Group plc LEI: 213800LO8F61YB8MBC74

 

Further information about Ocado is available on its website at
www.ocadogroup.com (http://www.ocadogroup.com) .

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDFLFVTFVLSIIE



            Copyright 2019 Regulatory News Service, all rights reserved