Ocado Faces Decline Following Kroger's Decision to Shut Automated Warehouses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 19 2025
0mins
Should l Buy KR?
Source: SeekingAlpha
Ocado's Stock Decline: Ocado's shares dropped approximately 17% on the London Stock Exchange following Kroger's announcement to close three automated warehouses built in partnership with Ocado.
Impact on U.S. Growth: The closures, scheduled for January, represent a significant setback for Ocado's growth in the U.S., which is its most crucial foreign market.
Kroger's Strategic Shift: Kroger plans to pivot its e-commerce strategy away from automated warehouses towards partnerships with delivery services like Instacart, DoorDash, and Uber Eats.
Financial Expectations Not Met: Kroger cited that the automated warehouses did not meet financial expectations, prompting the change in strategy to enhance profitability.
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Analyst Views on KR
Wall Street analysts forecast KR stock price to rise
15 Analyst Rating
9 Buy
6 Hold
0 Sell
Moderate Buy
Current: 68.070
Low
68.00
Averages
75.00
High
85.00
Current: 68.070
Low
68.00
Averages
75.00
High
85.00
About KR
The Kroger Co. is a food and drug retailer. The Company operates supermarkets, multi-department stores and fulfillment centers throughout the United States. It operates approximately 2,731 supermarkets, 2,273 pharmacies and 1,702 fuel centers in over 35 states and the District of Columbia while also operating online through a digital ecosystem to offer customers an omnichannel shopping experience. The Company also manufactures and processes food for sale in its supermarkets and online. It offers Pickup and Harris Teeter ExpressLane personalized, order online, pick-up at the store services at approximately 2,412 of its supermarkets and provides delivery, which allows it to offer digital solutions to substantially all of its customers. Its delivery solutions include orders delivered to customers at retail store locations, customer fulfillment centers and orders placed through third-party platforms. The Company also offers customer-facing apps and interfaces.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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