Ocado shares fell by 20% on 12 September, after its major US supermarket partner Kroger held an earnings call the previous evening.
In 2018, the two firms agreed to build 20 fulfilment centres where automated robots sort orders using Ocado’s technology. Eight fulfilment centres have been built so far, with two more scheduled for this financial year.
However, during its earnings call, Kroger stated that it is looking at ways to cut costs, “including a full site-by-site analysis” of its automated fulfilment networks. Instead, Kroger could look to use its own stores to deliver groceries faster.
The shares were broadly flat on 15 September.
Our view
HL view to follow.
Ocado key facts
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