{"id":23805,"date":"2025-11-26T16:00:15","date_gmt":"2025-11-26T15:00:15","guid":{"rendered":"https:\/\/retail-optimiser.de\/kroger-reduces-number-of-its-ocado-automated-fulfilment-centres\/"},"modified":"2025-11-26T17:54:16","modified_gmt":"2025-11-26T16:54:16","slug":"kroger-reduces-number-of-its-ocado-automated-fulfilment-centres","status":"publish","type":"post","link":"https:\/\/retail-optimiser.de\/en\/kroger-reduces-number-of-its-ocado-automated-fulfilment-centres\/","title":{"rendered":"Kroger reduces number of its Ocado automated fulfilment centres"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"23805\" class=\"elementor elementor-23805 elementor-23793\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e2fcda2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e2fcda2\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-865845d\" data-id=\"865845d\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-79ffab8 elementor-widget elementor-widget-text-editor\" data-id=\"79ffab8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>US supermarket operator Kroger has announced to close three of eight logistics facilities for its online business, which are equipped with Ocado automation technology, in January 2026. Other locations are also under review. However, the company intends to maintain those in regions with high demand. In addition, the company is stepping up its collaboration with delivery services Instacart, Doordash and Uber Eats.<\/p>\n<p>Kroger said that the locations in Pleasant Prairie, Wisconsin, Frederick, Maryland, and Groveland, Florida, did not meet profitability targets. Order volumes were not sufficient to deliver an acceptable return on investment given the high fixed costs. The measures should help to increase operating profit of its online business by 400 million US Dollar.<\/p>\n<p>Evidently, home delivery of groceries has not developed as expected. Dedicated fulfilment centres, even if they are largely automated, can only be operated profitably, if they are utilised to capacity. Kroger will therefore focus more on picking in stores in the future. For this purpose, the company intends to make greater use of automation solutions. It is also strengthening cooperation with delivery services.<\/p>\n<h3>Focus on delivery services<\/h3>\n<p>The retailer recently announced that it intends to deploy Instacart as primary delivery services provider for its online shop and customer app in the future. <em>Lebensmittel Zeitung<\/em> reported. The company also plans to be the first retailer to offer access to Instacart&#8217;s AI shopper tool `Cart Assistant\u00b4 via its app. The chatbot helps customers plan meals, considering specific dietary habits, possible intolerances and available budgets.<\/p>\n<p>Since this autumn, Kroger customers have also been able to order their groceries via marketplace Doordash. An independent driver from the on-demand delivery service picks up the goods provided by the store and delivers them to the customer. Similarly, from the beginning of 2026, consumers will be able to order their groceries from more than 2,600 of the retailer&#8217;s stores via the Uber Eats platform.<\/p>\n<h3>Strategy change clouds prospects for technology providers<\/h3>\n<p>Kroger&#8217;s decision could also send a signal to other companies and at least slow down deployment of automated fulfilment centres. According to news agency <em>Reuters<\/em>, Ocado expects a 50 million US Dollar drop in revenues for 2026. However, Kroger&#8217;s technology provider is to receive a compensation payment of 250 million US Dollars. After the closures were announced, Ocado&#8217;s share price plummeted by 17 per cent.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>US supermarket operator Kroger has announced to close three of eight logistics facilities for its online business, which are equipped with Ocado automation technology, in January 2026. Other locations are also under review. However, the company intends to maintain those in regions with high demand. In addition, the company is stepping up its collaboration with delivery services Instacart, Doordash and Uber Eats. <\/p>\n","protected":false},"author":8,"featured_media":23795,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[36],"tags":[1552,772,220,117,2076],"class_list":["post-23805","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-en","tag-doordash-en","tag-instacart-en","tag-kroger-en","tag-ocado-en","tag-uber-eats-en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Kroger reduces number of its Ocado automated fulfilment centres - Retail Optimiser<\/title>\n<meta name=\"description\" content=\"US supermarket operator Kroger has announced to close three of eight logistics facilities for its online business, which are equipped with Ocado automation technology, in January 2026. 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