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Ocado says Canadian partner closing robotic warehouse in latest setback
['Sarah Butler']
The Guardian
Ocado has revealed its Canadian partner is closing a warehouse that uses its robots and automation technology in another blow to the UK online delivery group’s business model.
The decision came less than three months after Ocado’s US partner Kroger closed three warehouses, knocking almost a fifth off the UK company’s value.
Sobeys will continue to serve customers of its Voilà online grocery service through two customer fulfilment centres (CFCs) using Ocado tech in the Greater Toronto and Montreal areas.
The latest setback comes as Ocado continues to report losses despite growing sales.
The remaining Sobeys delivery centres plan to adopt Ocado’s new Swift Router system, which is designed to help them serve a higher proportion of same-day and short-lead-time orders.