Ocado Group (LSE:OCDO) has reworked its Canadian strategy with Sobeys following a review of regional online grocery demand, resulting in the planned closure of Sobeys’ Calgary customer fulfilment centre. The decision reflects slower-than-anticipated e-commerce adoption in Alberta, while investment continues in Ontario and Quebec through Ocado-powered facilities serving Greater Toronto and Montreal under the Voilà brand.
Under the updated arrangement, Ocado will roll out enhanced technology capabilities, including its Swift Router to enable faster and same-day delivery, alongside deeper integration with third-party platforms. The partners will also continue to deploy Ocado’s AI-driven in-store fulfilment solution across 87 stores nationwide. Plans for a Vancouver fulfilment centre remain on hold as the partnership prioritises regions with stronger demand visibility.
From a financial perspective, Ocado expects to receive around £18m in compensation during the current year related to the Alberta closure, while fee revenue in FY26 is forecast to be around £7m lower as a result. The group reiterated its ambition to reach cash-flow breakeven in FY26, framing the changes as part of a broader reset of its North American operations aimed at improving capital efficiency and long-term returns.
Overall, Ocado’s outlook continues to be weighed down by ongoing losses and revenue pressure, with technical indicators pointing to a cautious near-term backdrop. While liquidity remains solid and management highlighted progress in technology deployment and partner relationships, these positives only partially offset the financial and operational challenges facing the group.
More about Ocado Group
Ocado Group is a UK-based technology and logistics company that develops automated grocery fulfilment and e-commerce solutions for food retailers. Its offering spans robotics, software, customer fulfilment centres and AI-enabled in-store picking, supporting partners such as Sobeys in Canada and Kroger in North America as they expand online grocery capabilities.
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