Shares in Ocado have fallen by over 11% after its Canadian grocery partner, Sobeys, announced that it was to close a customer fulfilment centre (CFC) in Calgary.

The move, which is set to reduce Ocado’s fee revenue by £7m in the 2026 financial year, is a result of the Alberta grocery e-commerce market’s size and the rate of expansion being slower than originally anticipated.

Ocado had previously announced it would receive $350m in compensation from American retailer, Kroger, after it announced it would close three US CFCs this year.

The FTSE 250 grocery firm said the announcement follows a period of engagement to ensure its partnership with Sobeys is appropriately structured to drive long-term, sustainable growth.

Ocado expects to receive £18m in compensation in the current financial year as a result of the CFC closure in Alberta.

The firm has reaffirmed its priority of turning cash flow positive during the 2026 financial year, driven by continued growth in live and new sites.

Chief executive officer at Ocado, Tim Steiner, said: "Sobeys is an important partner to Ocado, and we have taken a pragmatic approach to refining the network and placing our partnership on the right footing to secure long-term, sustainable growth in the Canadian market.

"This has meant addressing some key challenges from early network planning decisions, in particular where the market has not developed as anticipated. It has also led to agreement on deepening our partnership in key markets.

"Online grocery in North America has continued to develop, and Ocado's technology has evolved significantly since our first CFCs were launched in the region. The changes we have made in our relationships with both Sobeys and Kroger represent a reset of our North American business, placing those partnerships in the best position to secure long-term growth, while reopening a substantial market for Ocado's much evolved technology."

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