Asda to Roll Out Ocado Platform in 1,100 Stores From 2027
KR•Ocado’s North American partner Kroger closed robotic fulfilment centres last year after weak demand, and Ocado has struck a UK deal to replace Asda’s e-commerce platform with its front-end, in-store fulfilment and last-mile software from 2027. Ocado shares jumped 12.3% with a £20 million annual earnings boost forecast.
1. Kroger's Ocado Centres Closure
Kroger shut multiple robotic customer fulfilment centres in the U.S. last year, citing weaker-than-expected demand and scale challenges in deploying Ocado’s automated systems across its network.
2. Asda to Adopt Ocado Technology
Under a deal effective from 2027, Asda will replace and upgrade its online infrastructure using Ocado’s front-end webshop, in-store fulfilment systems and last-mile planning software across its roughly 1,100 stores and dedicated dark stores.
3. Financial Impact and Outlook
Ocado shares rose 12.3% on the announcement, with JPMorgan forecasting an annual £20 million boost to core earnings from 2027. Ocado also expects to turn cash-flow positive in the second half of 2025/26 and for the full 2026/27 year.
