Ocado says Canadian partner closing robotic warehouse in latest setback

Ocado Faces Setback as Canadian Partner Closes Robotic Warehouse

Ocado's struggles have deepened with the closure of a robotic warehouse in Calgary by its Canadian partner Sobeys, sending shares plummeting over 10% on Thursday. The move is a significant blow to Ocado's business model, which relies heavily on its proprietary technology and automation solutions.

The news comes less than three months after another major partner, Kroger, shut down three warehouses in the US, knocking off nearly a fifth of Ocado's value. While Ocado is known for its expertise in online grocery shopping, its main route to expansion lies in providing software and robotics solutions to other companies worldwide.

However, competition from rival providers has mounted pressure on Ocado, with many retailers opting for more flexible and cost-effective options by fulfilling orders directly from their stores rather than relying on third-party logistics. Sobeys will continue to operate two customer fulfillment centers using Ocado tech in the Greater Toronto and Montreal areas but plans for a new site in Vancouver are now on hold.

CEO Tim Steiner described the move as "pragmatic" and said it would allow Ocado's North American business to evolve its partnerships and secure long-term growth while expanding its market reach. However, this latest setback adds to Ocado's list of challenges, including ongoing losses despite growing sales, which rose 13% to £674m in the first half of the year.

Analysts have questioned whether Ocado's large robot-run customer fulfillment centers are economically viable in developed economies like the US and Canada. The company faces competition from services like Deliveroo and Uber Eats, which use smaller vehicles for deliveries, potentially limiting its expansion plans. Despite this, Sobeys' remaining delivery centers will adopt Ocado's new Swift Router system to serve a higher proportion of same-day and short-lead-time orders.

I'm not surprised to see another major partner bailing on Ocado . It's like they're getting out before the tech market crashes or something... but at this point, it feels like a domino effect – one by one, these big names are backing away from Ocado's robot warehouse thingy . It's gotta be tough for them to compete with all the other players in the game now, and it's not just about Amazon or Walmart, there's Deliveroo, Uber Eats... they're all vying for the same customers . I'm still optimistic about Ocado's software solutions, that's where their bread is buttered but these major partner losses are a bit of a nail in the coffin . Maybe they should just focus on being the best at what they do instead of trying to expand into new markets?

ugh, another one bites the dust ... like what's going on with these huge warehouses? they're just gonna shut down left and right? ocado's always relying on tech to save them but now it seems like nobody wants that robotic stuff anymore. and those delivery services, deliveroo and uber eats? they're just stealing the show ... no wonder ocado can't even make profits with all these 'growth' plans ... maybe they should just stick to online grocery shopping like everyone else

I'm not surprised about Ocado's struggles . They've been trying to make their robotics tech work for a while now and it seems like other partners are starting to lose faith in them . Sobeys' decision to close that warehouse is definitely a blow, but I think the real issue here is how Ocado is trying to adapt to changing consumer habits . With more people opting for same-day deliveries and whatnot, they need to figure out new ways to make their tech work for smaller players like Deliveroo and Uber Eats . It's not just about having robots doing all the work, it's about being flexible and adaptable to different markets . I'm curious to see how Ocado will navigate this stuff in the coming months

Ugh, this is not good news . I mean, I get it, automation tech can be pricey & some partners just don't wanna shell out the cash . But Ocado's been relying so much on these robotic warehouses & now they're shutting down left & right . It's like, what's next? They gotta rethink their business model & start prioritizing cost-effective solutions over fancy tech . And to make matters worse, Kroger just did the same thing in the US . This is just a PR disaster for Ocado .

Ugh, this is getting worse by the day... I mean, what's up with these big box stores just shutting down their warehouses and leaving their customers high and dry? And Ocado, which was supposed to be all about innovation and tech, is now struggling to stay afloat. It's like they thought they were above the game just because they had fancy robots and whatnot... But the reality is, it's not that simple. The market is changing, people want more flexibility and convenience, and Ocado's old model just isn't working anymore. I mean, can't they see that their robot-run warehouses are a bit of a dinosaur? And now Sobeys is leaving too? It's like they're all just playing a game of logistical musical chairs... Anyway, I guess it's good for us consumers in the long run, but still, it's not great for Ocado.

just saw that Ocado's robotic warehouse in Canada got shut down by their partner Sobeys it's like, what's going on with this company? they're known for online grocery shopping but now it seems like their business model is all messed up . did you see those shares go down 10% tho ? Ocado's CEO says it's "pragmatic" but that just sounds like corporate speak . I mean, have they even thought about how this affects their growth plans in the US and Canada? . also, what's with all these companies going for more flexible logistics options ? Deliveroo and Uber Eats are killing it . Ocado needs to step up their game or risk getting left behind . btw, have you seen those charts on Ocado's profits over the past year? they're still in the red

ugh man ocado is struggling it seems like their robotic warehouse strategy isn't paying off as well as they thought and now they're facing this major setback with sobeys closing down one in canada 13% growth in sales is cool and all, but can't compensate for losses analysts are right to question the economic viability of these big robot-run centers maybe it's time to adapt and scale back?

Ugh, another one of those big corps hitting the wall ... So like, Sobeys closes their robotic warehouse in Calgary and it's a major blow to Ocado's plans . I'm not surprised tho, I mean, online grocery shopping is getting super competitive with all these new delivery services popping up ️. And let's be real, who wants to deal with robots doing all the work when you can just have your local store do it for ya?

But seriously, Ocado needs to find a way to adapt and make their tech more affordable and flexible for retailers . Maybe they should focus on helping smaller stores get started instead of targeting big ones? Just saying...

omg u guys i cant even right now i was so hyped about ocado expanding their robotic warehouse in canada but noooo they had to go and shut down sobeys whole facility thats like a major blow to their business model and shares are tanking lol 10% already? thats crazy! i mean i get it tho tim steiner said its pragmatic but u cant help feeling bad for the employees who lost their jobs and now ocado's gotta figure out how to make this new system work and secure long-term growth in na

ugh this is just great... another partner shutting down their robotic warehouse... like what did they expect? the market is all about flexibility and cost-effectiveness now, and Ocado's tech just can't compete with that . and now Sobeys is scaling back their plans too... it's just a domino effect. I mean, I've been saying for ages that Ocado's business model was flawed, but no one listened . it's not like they didn't see the writing on the wall... but still, 10% drop in shares? that's just brutal .

OMG, I'M SO SHOOK BY THIS NEWS!!! it looks like ocado's big dreams are getting crushed by competition from other services like deliveroo and uber eats!! i mean, can you blame them? using smaller vehicles for deliveries is way more efficient and cost-effective than having a giant robot-run warehouse and i gotta wonder if ocado was being too optimistic about its expansion plans into the us and canada anyway, it's gonna be interesting to see how ocado recovers from this setback

just when you thought ocado couldn't get any more... robotic about that closure in calgary tho, i mean, who needs 2 fulfillment centers in the same city? it's not like sobeys is going to be losing money or anything anyway, tim steiner says it's "pragmatic"... yeah sure, just don't expect us to be all excited about it and btw, 10% off their shares is no joke

idk why ppl r surprised by this ocado's business model is all about tech & automation but they're still struggling to keep up with the competition it's not like they're alone in this, lots of other companies are facing similar issues with their own solutions. maybe instead of getting all bent outta shape about it, we should just be like "meh" and see what happens next sobeys is still on board tho, so that's a small win for ocado

Ugh, Ocado is having another major disaster ! I mean, it's not like they're struggling with sales or anything (13% growth in the first half isn't something to brag about, tbh). But seriously, a Canadian partner just shut down their robotic warehouse and shares are tanking... what's going on? They're really pushing all their eggs into one basket with this tech stuff and it's just not paying off. And now they've got Deliveroo and Uber Eats coming after them with those smaller delivery services... I don't know how Ocado is gonna turn this around, but I'm guessing they'll just keep on struggling

omg, i dont know how ocado can keep up with all these setbacks ! first they had the kroger issue, now sobeys is closing its robotic warehouse in calgary... i mean, i get it, competition is tough and costs need to be cut, but this is like a domino effect . what's next? will they have to shut down their own warehouses too?

Ocado's robotic warehouse debacle is just another reminder that even the tech-savvy can't escape the harsh realities of e-commerce . I mean, who needs all those robots when you've got good old-fashioned logistics and a willingness to adapt? It's like my kids say - sometimes, it's better to roll with the punches rather than trying to invent your own solution to every problem . And honestly, can we blame Sobeys for re-evaluating their strategy? I'd want to know if all that robot business was really worth it too ... and at what cost?