Ocado Shares Tumble as Sobeys Shuts Calgary CFC, Partnership Reshaped

Ocado (LON: OCDO) shares fell more than 9 percent on Thursday morning to 223.2p after the company confirmed that Sobeys will close its customer fulfilment centre (CFC) in Calgary, reshaping part of the pair’s long-running e-commerce partnership in Canada.

The stock is down more than 7 percent year to date and has fallen nearly 28 percent over the past 12 months.

The move follows Sobeys’ reassessment of online-grocery demand in key regions, with the Alberta market proving smaller and slower-growing than initially forecast.

As a result, Sobeys will discontinue operations at the Calgary site but will continue expanding its Voilà service in Ontario and Quebec through two existing Ocado-powered CFCs in Toronto and Montreal.

Ocado said it is deploying upgraded technology into those sites, including its Swift Router system, which is designed to increase the share of same-day and short-lead-time orders fulfilled directly from CFCs.

The upgraded setup also supports integration with third-party delivery platforms. Both companies have agreed on additional measures to reinforce the partnership’s long-term growth trajectory.

Development of a third CFC in Vancouver will remain paused, with the timeline under ongoing review. Sobeys continues to use Ocado’s AI-enabled in-store fulfilment tools across 87 stores nationally.

Chief executive Tim Steiner said Ocado had taken “a pragmatic approach” to refining the network following market conditions that “did not develop as anticipated.” He added that the changes represent “a reset of our North American business.”

Ocado expects £18 million in compensation this year for the Calgary closure, which will reduce FY26 fee revenue by £7 million. The company reiterated its target of achieving positive cash flow in FY26.