Kroger slows investment in automated warehouses 

The Kroger Co. BB #:100073 may be slowing its investment in robotic customer fulfillment centers, in which it partners with Ocado. 

In Kroger’s Q2 2025 earnings call on September 11, 2025, chairman and interim CEO Ron Sargent said the retailer will conduct a site-by-site analysis of its automated fulfillment network. 

“Where we have seen strong demand in high-density areas, these facilities deliver better results than those facilities where density is lower and customer adoption has been slower,” he said. 

Sargent succeeded Rodney McMullin as CEO last March and announced a strategic review of Kroger’s e-commerce operations during the summer. 

Ocado partnered with Kroger in 2018 as the retailer invested in grocery delivery and automated robotic warehouses.  

According to Reuters, Kroger planned to build 20 automated warehouses in the United States, but so far, only eight have gone live, with plans to open warehouses in Charlotte and Phoenix sometime next year.

“We thought the tone on [automated warehouse] investment was cautious, with more focus seemingly on using existing store footprint,” Barclays analysts said of Sargent’s comments, according to Reuters.