Ocado has seen its shares plunge after warning over a hit of around 50 million dollars (£38 million) from its US partner’s decision to close three warehouses.
The online grocer and retail technology firm lost over a fifth of its stock market value – 22% – in Tuesday afternoon trading after revealing Kroger’s plans to shut the sites.
Ocado said the move would knock fee revenue by 50 million dollars (£38 million) in 2025-26, although it added the firm will also receive 250 million dollars (£190 million) in compensation for early closure of the warehouses.
The sites are expected to shut in January.
Ocado will continue to operate five sites for Kroger in Monroe, Dallas, Atlanta, Denver and Detroit.
The firm said it would also continue to support Kroger with logistics operations and driving profitable sales volume growth in the remaining sites.
Ocado added it continues to expect “significant growth” in the US market through automation of warehouses and store-based automation.
