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Ocado Falls After US Partner Kroger Questions Warehousing Future
Kroger is evaluating its automated fulfillment centers to reduce costs and enhance profitability by emphasizing online order delivery directly from stores, boosting efficiency and speed.
- On Thursday, Kroger's interim CEO Ron Sargent announced a full site-by-site review of its automated fulfillment network in the US.
- This review builds on Kroger's strategic assessment of its e-commerce operations initiated in June, focusing on enhancing operational efficiency and boosting profitability amid a slowdown in the expansion of fulfillment centers.
- Since partnering with Ocado in 2018, Kroger has launched eight automated customer fulfillment centers and plans to open two additional facilities located in Charlotte and Phoenix during the upcoming fiscal year.
- Sargent noted that the company is thoroughly reviewing some of its automated fulfillment centers and aims to enhance how quickly customers receive their groceries by better utilizing its store network.
- The announcement caused Ocado shares to plunge over 12%, raising concerns that Kroger may shift focus to store-based delivery and possibly close some automated warehouses.
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10 Articles
10 Articles
Ocado Falls After US Partner Kroger Questions Warehousing Future
Ocado Group Plc shares tumbled the most since February after Kroger Co. questioned the future of their partnership, raising concerns that the major US grocer could close some existing automated warehouses to cut costs.
·United States
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Coverage Details
Total News Sources10
Leaning Left2Leaning Right1Center3Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 33%
C 50%
R 17%
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