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Ocado hit by fresh warehouse closure as North American partners cut ties
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Sobeys serves as Ocado’s North American partner - JHVEPhoto/AlamyOcado has been hit by a fresh setback in its North American business after its Canadian partner decided to shut one of its robotic warehouses.
It comes barely three months after Kroger – the American groceries giant and Ocado’s biggest partner – dealt another $50m (£36m) blow when it decided to scrap three warehouses.
Tim Steiner, the chief executive of Ocado, said: “Online grocery in North America has continued to develop, and Ocado’s technology has evolved significantly since our first customer fulfilment centres were launched in the region.
In the UK, the company runs a joint online groceries venture with Marks & Spencer and operates one robot warehouse for rival chain Morrisons in Warwickshire.
But it has been hit by a string of warehouse closures recently as retailers switch to preparing online deliveries in their stores instead.