29th Jan 2026 10:45
(Alliance News) - Ocado Group PLC on Thursday saw its shares slump as it said its Stellarton, Canada-based partner Sobeys Inc has decided to close one of its three Ocado-powered customer fulfilment centres.
The online grocery retailer was down 9.9% at 221.40 pence on Thursday morning in London.
Hatfield, England-based Ocado said Sobeys has chosen to close its Calgary centre, primarily due to the size of the Alberta grocery e-commerce market and a slower-than-expected rate of expansion.
Sobeys is set to continue serving customers through its Ocado-enabled Voila banner in the regions of Ontario and Quebec, where online grocery penetration is improving, and growth potential is "high".
Ocado noted that this is supported by its two existing CFCs in the Greater Toronto and Montreal areas.
Across these sites, Ocado said it is rolling out new technology into Sobeys' operations, including its Swift Router system to boost same-day and short-lead-time delivery capability and integrate Ocado-fulfilled orders with third-party platforms.
The company added that it has agreed a "number of further actions" that it expects to "place the partnership on a strong footing for continued long term growth".
The partners will also continue the pause on development of a Vancouver CFC, with Ocado noting that the go-live timeline for that site remains under regular review.
Ocado added that Sobeys continues to use Ocado's in-store fulfilment software in 87 stores nationwide.
The company said the closure will trigger GBP18 million in compensation this financial year and cut fee revenue by GBP7 million in financial 2026. Ocado reiterated its goal of turning cash flow positive in financial 2026.
"Sobeys is an important partner to Ocado, and we have taken a pragmatic approach to refining the network and placing our partnership on the right footing to secure long-term, sustainable growth in the Canadian market. This has meant addressing some key challenges from early network planning decisions, in particular where the market has not developed as anticipated. It has also led to agreement on deepening our partnership in key markets," said Ocado Chief Executive Tim Steiner.
By Christopher Ward, Alliance News reporter
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