Ocado shares surge as Kroger to pay $350m for CFC closures.
US supermarket chain Kroger is to pay $350m in compensation to Ocado for the closure of three automated warehouses using its technology, the UK online grocer said on Friday, with the news sending its shares soaring.
Source: Sharecast
The payment also reflects Kroger's decision not to proceed with another customer fulfilment centre in Charlotte, North Carolina, one of the two planned CFCs due to go-live in 2026.
Ocado earlier this month said Kroger’s decision to fulfil online orders from its own stores in highly populated areas would cost it $50m in lost licensing fees.
The decision saw Ocado shares slump by 17%. Ocado and Kroger’s original plans were to develop 20 automated distribution centres, where robots pick, transport and pack groceries, over three years. On Friday Ocado stock was up 10% at one stage.
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