Ocado seeks new American investment after supermarket warehouse closures

Ocado seeks new American investment after supermarket warehouse closures The London-listed retail technology firm said it has had ‘live engagement’ with potential partners in the US. - Bookmark - CommentsGo to comments London-listed retail technology firm Ocado is actively pursuing new partnerships globally, aiming to revitalise its business after two significant supermarket clients announced plans to close robotic warehouses. This strategic pivot follows decisions by US giant Kroger and Canada's Sobeys to shut down Ocado-operated facilities, citing subdued consumer demand. Despite these setbacks, Ocado has reported "live engagement" with prospective partners in the United States. The expiration of several exclusivity agreements has opened doors for the group, enabling it to intensify its search for "multiple new grocery prospects" across North America, Europe, and the Asia Pacific region. The company also revealed on Thursday that one-off fees associated with these closure plans actually contributed to an uplift in its revenues and earnings over the last six months. It revealed that group revenues jumped by 54 per cent to £1.04 billion for the six months to 31 May, compared with a year earlier. This was heavily linked to £354 million in fees and other revenues connected to the proposed closures. Revenues were only 1 per cent higher after stripping out the one-off impact of the closures. Meanwhile, earnings before tax lifted to £17 million, compared with a £173 million loss a year earlier. The group’s UK joint venture with Marks & Spencer, Ocado Retail, saw revenues lifted by 15 per cent and posted stronger earnings for the period. Tim Steiner, chief executive of Ocado, said: “The first half of the year has seen accelerating international volume growth, strong commercial momentum, improved organisational efficiency, and rigorous cost discipline. “Since the start of the year, we’ve been re-engaging retailers across some of the world’s largest grocery markets, with the USA a particular focus, supported by a significantly evolved portfolio of technology solutions.” The update comes a week after Mr Steiner said he will stay on at the helm of the group until December next year, but confirmed succession plans after months of speculation. The group said it would look to finalise the plans at the start of its 2027-28 financial year, which begins on 1 December 2027. It came after reports of unrest with Ocado chair Adam Warby, and the Tetra Pak billionaire Jorn Rausing – a shareholder and board member. Shares in the company were down 15 per cent on Thursday morning. Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments [Image text:] Cocado 25 NM70BED