Why Kroger’s $2.6B Automation Bet Failed

Kroger tried to build the future of grocery delivery with robots. *Retail didn’t die, it evolved. Click this link for 5 unexpected trends that show how Trader Joe’s, Costco, and TikTok sellers are actually printing money.* 🔗 https://clickhubspot.com/304d4b In 2018, Kroger partnered with UK automation company Ocado to roll out a nationwide network of “robot warehouses” — the famous “hive” system. It looked like the perfect corporate tech story… until the economics collided with American geography and American delivery expectations. By late 2025, Kroger announced it would shut down multiple Ocado-powered automated fulfillment sites (including the Frederick, MD facility I visited in this video), take a $2.6B charge related to the network, and pay Ocado a one-time $350M settlement as it “optimizes” the partnership. *Note: These thumbnails were designed by Jacob Reynolds. Subscribe to The Hustle: 🔗 https://clickhubspot.com/vu3l Get the 5-minute newsletter keeping 2M+ innovators in the loop 🔗 https://clickhubspot.com/3kln About HubSpot: HubSpot is a customer platform that provides education, software, and support to help businesses grow better. The platform includes marketing, sales, service, commerce, operations, and website management products that start free and scale to meet our customers’ needs at any stage of growth. Today, thousands of customers around the world use HubSpot’s powerful and easy-to-use tools and apps to attract, engage, and delight customers. #TheHustle #HubSpot