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Kroger-Ocado robotics project: Ocado steps out of tri‑party agreement after lower-than-expected job counts
Summary
Staff told the committee Ocado Solutions has asked to be removed from the tri-party Kroger agreement because its U.S. operations produced fewer jobs than projected; the robot installations are complete, Kroger will operate the fulfillment center and will create and maintain additional jobs as part of the agreement.
City staff told the committee that Ocado Solutions has requested removal from a tri‑party agreement with Kroger after the company failed to reach originally projected U.S. job numbers.
Kevin Spath said the original three‑party agreement envisioned Kroger operating a fulfillment center and Ocado supplying robotics equipment and operations. Spath said Ocado installed robotics equipment and completed its physical obligations at the site but did not achieve the staffing levels it projected when the agreement was signed; staff reported Ocado created about 28 jobs rather than the 60 originally anticipated.
Spath said Ocado has been paid for its work and that Kroger will continue as the operating tenant. As a result, Kroger has committed to create an additional roughly 20 on‑site jobs and maintain them for the term of the agreement, staff said.
Ending: Staff characterized the requested amendment as an administrative clean-up to remove an original contracting party whose physical scope is complete while preserving Kroger’s operating commitments and the project’s core outcomes.
