Retail technology firm Ocado has been dealt another blow after its US partner Kroger scrapped plans for a new automated warehouse following its decision last month to shut three existing sites.

Ocado said Kroger would no longer go ahead with a site in Charlotte , North Carolina , which was one of two due to launch in 2026 that Ocado is contracted to deliver.

But London-listed Ocado saw shares rise 6% after announcing it had secured a 350 million US dollar (£262 million) compensation payout from Kroger for the move to scale back its warehouses.

Ocado – which offers automated technology for retailer distribution centres, as well as running its own online grocery business – said Kroger will make the one-off cash payment in January.

It follows the announcement last month that Kroger

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