Business
Update on Sobeys Partnership
Ocado Group plc has announced an update to its partnership with Sobeys, which includes the closure of its Calgary Customer Fulfilment Centre (CFC) due to slower than anticipated e-commerce market growth in Alberta, for which Ocado expects to receive £18m in compensation this financial year, though this closure will reduce Ocado's fee revenue by £7m in FY26. The partnership will continue to focus on Ontario and Quebec with the Voilà banner, supported by existing CFCs in Toronto and Montreal, where Ocado is deploying new technology including 'Ocado Swift Router' and integration with third-party platforms. Development of the Vancouver CFC remains paused, and Sobeys continues to utilize Ocado's in-store fulfilment software across 87 stores. Ocado reaffirms its priority of achieving cash flow positivity in FY26. Disclaimer*
About this update from Ocado Group Plc
[{"type":"text","content":"\n\nTHIS ANNOUNCEMENT RELATES TO THE DISCLOSURE OF INFORMATION THAT QUALIFIED OR MAY HAVE QUALIFIED AS INSIDE INFORMATION WITHIN THE MEANING OF ARTICLE 7(1) OF THE MARKET ABUSE REGULATION (EU) 596/2014, AS AMENDED (AND INCLUDING AS IT FORMS PART OF UNITED KINGDOM DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED).\n \nOcado Group plc\n29 January 2026\nOcado Group plc\nUpdate on Sobeys Partnership\n \nOcado Group (\"Ocado\") has announced an update to its partnership with Sobeys following a period of engagement to ensure the partnership is appropriately structured to drive long term, sustainable growth. Following those discussions, Empire Company Limited has made an announcement today related to Sobeys' e-commerce operations in certain Canadian geographies.\n \nFollowing an assessment of e-commerce demand in key markets, Sobeys has decided to close its CFC in Calgary largely due to the Alberta grocery e-commerce market's size and the rate of expansion being slower than originally anticipated.\n \nWith improving e-commerce penetration and high-growth potential in Ontario and Quebec, Sobeys will continue to serve customers through its Ocado-enabled Voilà banner in those regions, supported by its two existing CFCs in the Greater Toronto and Montreal areas.\n \nOcado is deploying new technology into Sobeys' operations in Toronto and Montreal, including the delivery of 'Ocado Swift Router', a functionality designed to enable a higher proportion of same day and short-lead time orders to be served from CFCs. This also includes the option for Ocado-fulfilled orders to be integrated with third party platforms, such as online aggregators. Ocado and Sobeys have also agreed on a number of further actions to place the partnership on a strong footing for continued long term growth.\n \nIn addition, and as previously communicated, the companies will continue the pause on development of its CFC located in the Vancouver area. The go-live timeline for that site remains under regular review, with the site able to commission and scale quickly when required. In addition, Sobeys continues to use Ocado's AI-powered in store fulfilment software across 87 stores nationwide.\n \nTim Steiner, CEO of Ocado Group, said:\n \n\"Sobeys is an important partner to Ocado, and we have taken a prag...