Can Ocado survive Kroger’s closure of three robotic CFCs?

Ocado plum van

Source: Ocado

The decision has dealt a blow to the credibility of Ocado Group’s model

A “near knockout punch” was Shore Capital’s Clive Black verdict on Kroger’s decision to close three Ocado tech-powered CFCs.

Last week’s news knocked Ocado’s share price to its lowest in more than a decade. The group will also face the immediate pain of a $50m hit to fee revenue next year.

So where does the blow leave Ocado’s longer-term prospects?

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