Ocado Gets Boost From Kroger’s Tech Order

Ocado announced on Monday that Kroger, its U.S. partner, had ordered a variety of new automated technologies for its warehouses

Ocado’s shares experienced a decline last month following the suspension of the opening of a fourth autonomous warehouse by its Canadian supermarket partner, Sobeys. However, they have since rebounded due to Japanese partner Aeon’s commitment to construct a third warehouse and Ocado’s revision of its annual financial guidance.

The stock experienced a 7.1% increase in early trading, which reduced its year-over-year losses to 41%.

In its live network and prospective CFCs, Kroger will integrate the most recent technologies, including Automated Frameload (AFL) and On-Grid Robotic Pick (OGRP), across numerous warehouses, as Ocado terms them.

Ocado’s most significant collaborator, Kroger, did not assign a value to the order.

The OGRP is a robotic arm that is physically installed on the grid of a warehouse. Robots deposit groceries on the grid and then packed into customer bags by the robot limbs.

Ocado says OGRP can select over 70% of an extensive online grocery selection when operating at maximum capacity.
AFL automates the most physically taxing task in the warehouse: loading prepared customer orders onto delivery frames for dispatch.

Ocado stated that Kroger’s delivery network will experience enhanced efficiency and labor productivity due to integrating both technologies.

As Ocado CEO Tim Steiner stated last week, the global channel transition to online has resumed, and investors should not lose confidence in the company’s model.

Ocado is anticipating a debt refinancing by the conclusion of 2025.

According to analysts at Jefferies, the Kroger and Aeon orders, in conjunction with the revised guidance, had “significantly strengthened Ocado’s position in this critical catalyst for the equity.”