By James Davey

LONDON (Reuters) -Shares in Ocado, the online supermarket and technology group, fell sharply on Friday after U.S. partner Kroger signalled a potential retreat from investment in automated warehouses.

The stock was down 13% at 1140 GMT, extending losses over the last year to 18%, after Kroger’s chairman and interim CEO Ron Sargent said the company was conducting a “site-by-site” review of its automated fulfilment network, built in partnership with Ocado.

The comments sparked concerns that Kroger may be cooling on plans to expand its network of robotic customer fulfilment centres (CFCs), a core part of Ocado’s international growth story.

Sargent, who succeeded long-time boss Rodney McMullen in March, launched a strategic review in June of the group’s e-commerce operations.

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