Ocado suffered a sharp fall in its market value following Kroger’s announcement that several robotic warehouses would close. The news struck at the heart of Ocado’s global expansion strategy, which has relied on major partnerships to export its automation technology.
The market reaction reflects an underlying concern: if a leading American grocer is stepping back from robotics, what does that mean for the future of Ocado’s high-capex fulfilment model?
Despite the setback, Ocado leadership insists the technology continues to deliver transformational efficiency gains. However, industry experts suggest the company may need to adapt its offering to smaller, more flexible systems aligned with the evolving demands of omni-channel retail.