Ocado shares plunge 13% as US partner Kroger rethinks warehouse strategy

An Ocado grocery delivery van is driven along a street in London, Britain, March 25, 2023. REUTERS/Toby Melville/File Photo

LONDON (Reuters) -Shares in Ocado, the online supermarket and technology group, fell sharply on Friday after U.S. partner Kroger signalled a potential retreat from investment in automated warehouses.

The stock was down 13% at 1140 GMT, extending losses over the last year to 18%, after Kroger's chairman and interim CEO Ron Sargent said the company was conducting a “site-by-site” review of its automated fulfilment network, built in partnership with Ocado.