Key facts
- Ocado is in discussions with multiple retailers in the U.S. for new partnerships.
Ocado's shares dropped to a 13-year low amid ongoing talks with multiple U.S. retailers for new partnerships. The company maintained its cash flow forecasts despite partner closures and a 36% share price decline in six months.
Ocado's ability to secure new U.S. partnerships is critical for its future growth and financial stability, especially as existing partners scale back operations.
British technology and online grocery group Ocado is in talks with multiple U.S. retailers for new business, despite its shares hitting a 13-year low due to a lack of progress. Partners Kroger in the U.S. and Sobeys in Canada have closed robotic customer fulfillment centers, citing weaker-than-expected demand, contributing to a 36% decline in Ocado's shares over six months. The company is presenting 'significantly evolved solutions' to potential U.S. partners. Despite a 12% drop in half-year adjusted earnings to £81 million ($109.63 million) excluding one-off termination fees, Ocado reiterated its forecast for cash flow to become positive within the current six-month period and for the full year next year. Ocado's business model involves providing automated technology for distribution centers and operating its own UK online grocery business via a joint venture with Marks & Spencer.
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