Ocado confirmed that its US supermarket partner Kroger has decided to close three Customer Fulfilment Centres (CFCs), which use Ocado’s technology to fill customers’ orders. This is set to reduce Ocado’s fee revenue in the current year by around $50mn.
Ocado expects to receive compensation of more than $250mn for the early closure of these sites.
In areas where demand density is higher, Kroger will continue to operate CFCs using Ocado’s technology.
The shares fell 21.9% following the mid-afternoon announcement.
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