Ocado Shares Hit 12-Year Low Before Kroger Review

The London Stock Exchange witnessed a significant downturn for Ocado Group Plc as shares closed at 199.2 pence, representing a 4.4% decline and hitting the lowest trading level since May 2013. This dramatic slide has reduced the company’s market capitalization to about £1.6 billion ($2.2 billion), marking one of the most substantial value erosions in recent British retail technology history. The current valuation stands in stark contrast to the company’s peak market value of over £21 billion achieved in September 2020, representing a staggering 92% decline from its pandemic-era highs.

The trading session reflected growing investor unease as volumes surged amid the price decline, indicating widespread concern about the company’s near-term prospects. The British Pound-denominated stock has been under consistent pressure throughout 2025, with the latest drop pushing it to levels not seen since before the company’s major international expansion initiatives began. This performance places Ocado among the worst performers on the London Stock Exchange in recent months, highlighting the severity of the market’s reassessment of the company’s growth trajectory and partnership strategy.

At the heart of investor anxiety lies the pending outcome of a strategic review by Kroger Co, Ocado’s crucial US retail partner. The partnership, which has been central to Ocado’s international expansion strategy, now faces uncertainty as Kroger evaluates its future direction and commitments. The review outcome is particularly significant given that the US market represents one of Ocado’s most important growth opportunities outside its domestic United Kingdom operations.

The timing of the strategic review coincides with broader challenges in the global retail sector, where technology investments are being scrutinized for their return on investment. Kroger’s assessment of its partnership with Ocado comes as the US retailer navigates its own competitive landscape and operational priorities. For Ocado, the Kroger relationship has been instrumental in validating its technology platform internationally, making any potential scaling back or restructuring of the partnership a major concern for investors who had priced in significant future revenue from the arrangement.

The dramatic reversal in Ocado’s fortunes represents one of the most striking turnarounds in recent market memory. During the pandemic, the company’s automated warehouse technology and online grocery solutions positioned it as a clear beneficiary of shifting consumer behavior, driving its valuation to extraordinary heights. The £21 billion market capitalization achieved in September 2020 reflected investor expectations that the company would dominate the future of grocery retail through its proprietary technology solutions.

However, the post-pandemic normalization of shopping patterns, combined with execution challenges and the capital-intensive nature of its business model, has steadily eroded investor confidence. The current £1.6 billion valuation suggests the market has substantially downgraded its assessment of Ocado’s growth potential and profitability timeline. The stock’s decline to 199.2 pence represents not just a technical correction but a fundamental reassessment of the company’s business model and competitive positioning in the evolving retail technology landscape.

As investors await the Kroger review outcome, the focus remains on whether Ocado can stabilize its partnerships and demonstrate a clear path to sustainable profitability. The company’s ability to navigate this critical juncture will likely determine whether it can regain investor trust or face further challenges in the competitive global retail technology sector.