REG - Ocado Group PLC - Update on Sobeys 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:20260129:nRSc8145Qa&default-theme=true

RNS Number : 8145Q  Ocado Group PLC  29 January 2026

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

29 January 2026

Ocado Group plc

Update on Sobeys Partnership

 

Ocado Group ("Ocado") has announced an update to its partnership with Sobeys
following a period of engagement to ensure the partnership is appropriately
structured to drive long term, sustainable growth. Following those
discussions, Empire Company Limited has made an announcement today related to
Sobeys' e-commerce operations in certain Canadian geographies.

 

Following an assessment of e-commerce demand in key markets, Sobeys has
decided to close its CFC in Calgary largely due to the Alberta grocery
e-commerce market's size and the rate of expansion being slower than
originally anticipated.

 

With improving e-commerce penetration and high-growth potential in Ontario and
Quebec, Sobeys will continue to serve customers through its Ocado-enabled
Voilà banner in those regions, supported by its two existing CFCs in the
Greater Toronto and Montreal areas.

 

Ocado is deploying new technology into Sobeys' operations in Toronto and
Montreal, including the delivery of 'Ocado Swift Router', a functionality
designed to enable a higher proportion of same day and short-lead time orders
to be served from CFCs. This also includes the option for Ocado-fulfilled
orders to be integrated with third party platforms, such as online
aggregators. Ocado and Sobeys have also agreed on a number of further actions
to place the partnership on a strong footing for continued long term growth.

 

In addition, and as previously communicated, the companies will continue the
pause on development of its CFC located in the Vancouver area. The go-live
timeline for that site remains under regular review, with the site able to
commission and scale quickly when required. In addition, Sobeys continues to
use Ocado's AI-powered in store fulfilment software across 87 stores
nationwide.

 

Tim Steiner, CEO of Ocado Group, said:

 

"Sobeys is an important partner to Ocado, and we have taken a pragmatic
approach to refining the network and placing our partnership on the right
footing to secure long-term, sustainable growth in the Canadian market. This
has meant addressing some key challenges from early network planning
decisions, in particular where the market has not developed as anticipated. It
has also led to agreement on deepening our partnership in key markets"

 

"Online grocery in North America has continued to develop, and Ocado's
technology has evolved significantly since our first CFCs were launched in the
region. The changes we have made in our relationships with both Sobeys and
Kroger represent a reset of our North American business, placing those
partnerships in the best position to secure long-term growth, while reopening
a substantial market for Ocado's much evolved technology"

 

Expected financial impact:

 

Ocado expects to receive compensation during the current financial year of
£18m for the closure of the CFC in Alberta. The closure of the CFC in Alberta
is expected to reduce Ocado's fee revenue by £7m in FY26.

 

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

Stephen Daintith, Chief Financial Officer

Nick Coulter, VP of Group Capital Markets and FP&A
(investor.relations@ocadogroup.com)

Jamie Kerr, Director of Communications (pressoffice@ocadogroup.com)

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

 

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

 

 

Person responsible for arranging 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

 

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  UPDSEWEFAEMSELF



            Copyright 2019 Regulatory News Service, all rights reserved