Ocado pivots to store-based automation to court new U.S. grocery partners after Kroger pullback

Ocado, the British e-commerce fulfillment technology company, is pitching a new store-based automation system to U.S. grocers after its exclusive agreement with Kroger ended last year and the retailer scaled back their jointly developed fulfillment network. The scaled-down system holds around 20,000 products in 4,000 to 5,000 square feet using Ocado's grid-based robotics alongside human workers, and CEO Tim Steiner said the company's goal is to pilot the technology at several U.S. sites before a broader rollout, noting it makes financial sense for stores doing $5M or more in annual online sales. The pivot comes as Ocado faces mounting pressure, with Kroger closing three customer fulfillment centers, Canadian grocer Sobeys shutting a Calgary facility, and Ocado itself cutting roughly 1,000 jobs, about 5% of its workforce, last month.