Future Of British Business
The Rise and Fall of Ocado: Middle-England’s Favorite Grocer Suffers Share Price Drop
- Stock, bonds jump as US partner Kroger announces takeover
- Grocer lost market share in pandemic; robotic vision is fading
Ocado failed to capitalize on a surge in delivery demand spurred by Covid-19 lockdowns.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Ocado Group Plc’s stock has gotten a much-needed boost from merger news involving one of its partners, stemming a slump that had seen the technology-focused UK grocer lose three quarters of its value this year.
Shares of Ocado rallied as much as 12% on Friday, after an 11% gain in the prior session, as Kroger Co. said it agreed to acquire rival Albertsons Cos. to create a US grocery giant, confirming an earlier Bloomberg report. The deal could mean an increase in the number of automated warehouses that Ocado is building for Kroger, according to Morgan Stanley.