Ocado Group saw its shares drop by 18% yesterday (18 November), after the announcement of the closure of the Kroger robotic-warehouses in the US.

US supermarket Kroger announced plans to close three of its automated warehouses made in partnership with Ocado yesterday.

Kroger plans to close three of the automated fulfilment sites in Frederick, Maryland, Pleasant Prairie, Wisconsin, and Groveland, Florida.

The US supermarket expects to close down the sites in January 2026 and focus on areas where there is a higher consumer demand for fulfilment centres.

However, Ocado and Kroger’s automated warehouse partnership will continue to operate in five other locations in the US.

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The retailer plans to continue supporting Kroger in driving growth in the remaining locations, with active discussions on how to improve operations with the technology in progress.

Ocado expects to receive an early closure fee of approximately £190.51m from the US supermarket giant.

Ocado estimates the closure of the three sites will lead to a £38.1m decrease in overall revenue in the upcoming financial year.