Ocado Group PLC (LSE:OCDO) shares are down 10% as a second overseas supermarket client, Sobeys in Canada, has announced it will close one of its robot-run warehouses and keep its Vancouver site on pause.
This follows US customer Kroger's announcement to close three customer fulfilment centres at the end of last year.
Sobeys has decided to close its CFC in Calgary due to the e-commerce market being smaller and expanding at a slower rate, than originally expected.
Ocado is to receive a one-off payment of £18 million in compensation this year, though it said the closure will reduce its fee revenue by £7 million.
It also reaffirmed its commitment to reaching cash breakeven in 2026.
The £18 million is a significantly lower termination payment than the $85 million per CFC received from Kroger, pointed out analyst James Lockyer at Peel Hunt.
"While Sobeys' continuing two CFCs are expanding the number of services taken from Ocado, the closure is another blow for the company.
"The issue is that once secure, lifetime revenues from established sites are turning out to be more fragile. Investors will be wondering who will be next to close."