Ocado Gets $350 Million Payment From Kroger for Site Closures

Ocado Group Plc will receive a one-time cash payment of $350 million from Kroger Co., more than previously announced, after the US grocer decided to close three automated warehouses and scaled back plans for a wider rollout.

Kroger, the biggest customer for UK-based Ocado’s warehouse technology with eight fulfillment centers, announced the closures last month, saying its network was falling short of financial expectations. The grocer is taking a $2.6 billion impairment as it shifts toward completing online orders from its store network — rather than the Ocado warehouses — in some areas.