Ocado Group PLC (LSE:OCDO) shares jumped over 10% at the open after the online grocer secured a $350m cash settlement from US partner Kroger Co (NYSE:KR, XETRA:KOG) – topping the $250m flagged last month – following changes to the supermarket giant's fulfilment network.
The payment follows Kroger’s decision to close three customer fulfilment centres (CFCs) in January 2026 and to cancel plans for the Charlotte, North Carolina site.
The companies continue to operate five CFCs in Monroe, Dallas, Atlanta, Denver and Detroit. Ocado said its teams remain embedded in the network and noted progress in efficiency, volume growth and same-day availability.
Ocado’s ‘Re:Imagined’ products are being deployed across the network. Capacity at Detroit has been expanded, with further capacity ordered for 2026. AutoFreezer technology will appear for the first time in the Phoenix CFC.
Ocado chief executive Tim Steiner said: "We continue to invest significant resources to support our partners at Kroger, and to help them build on our longstanding partnership. Ocado's technology has evolved significantly to include both the new technologies that Kroger is currently deploying in its CFC network, as well as new fulfilment products that bring Ocado's technology to a wider range of applications, including Store Based Automation to support 'pick up' and immediacy."
Steiner said that partners in various countries are already using many of Ocado’s fulfilment technologies successfully, helping them serve different regions, population sizes and online shopping needs, all supported by Ocado’s expertise and research capabilities. The company continues to see strong potential for its developing products in the US market, he added.
The closure of the three live sites will reduce Ocado’s fee revenue in FY26 by about $50 million. The company restated its aim to turn cash-flow positive during FY26 through growth in live and new sites and strict cost and capital control.
Ocado's shares were up 19p at 203.5p
-- Updated with share price movement --