Ocado's Robotic Prospects at Risk as Kroger Turns to Instacart
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 20 2025
0mins
Should l Buy KR?
Source: Reuters
Kroger's Warehouse Closures: Kroger has decided to close three of its eight automated warehouses built with Ocado due to financial underperformance, opting instead to strengthen partnerships with faster delivery services like Instacart and DoorDash.
Ocado's Market Challenges: Despite being a pioneer in automated grocery delivery, Ocado has seen its market value decline significantly, with competitors like DoorDash and Instacart surpassing it in revenue and market performance.
Future of Automation: Analysts suggest that while retailers will continue to pursue automation, they must balance delivery speed with cost efficiency, particularly in areas where Kroger lacks a strong store presence.
Potential for New Partnerships: Although Kroger's decision raises concerns about Ocado's future business prospects, there may still be opportunities for new grocery partnerships as exclusivity agreements with existing clients expire.
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Analyst Views on KR
Wall Street analysts forecast KR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KR is 75.00 USD with a low forecast of 68.00 USD and a high forecast of 85.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
9 Buy
6 Hold
0 Sell
Moderate Buy
Current: 66.670
Low
68.00
Averages
75.00
High
85.00
Current: 66.670
Low
68.00
Averages
75.00
High
85.00
About KR
The Kroger Co. is a food and drug retailer. The Company operates supermarkets, multi-department stores and fulfillment centers throughout the United States. It operates approximately 2,731 supermarkets, 2,273 pharmacies and 1,702 fuel centers in over 35 states and the District of Columbia while also operating online through a digital ecosystem to offer customers an omnichannel shopping experience. The Company also manufactures and processes food for sale in its supermarkets and online. It offers Pickup and Harris Teeter ExpressLane personalized, order online, pick-up at the store services at approximately 2,412 of its supermarkets and provides delivery, which allows it to offer digital solutions to substantially all of its customers. Its delivery solutions include orders delivered to customers at retail store locations, customer fulfillment centers and orders placed through third-party platforms. The Company also offers customer-facing apps and interfaces.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- CEO Background: Foran brings over 40 years of experience in leading large consumer businesses, having successfully implemented digital transformations at Walmart U.S., and most recently served as CEO of Air New Zealand, where he navigated challenges during the pandemic.
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- Market Performance: Kroger shares rose 6.81% in premarket trading to $72.09, trading 12.9% above its 20-day simple moving average, reflecting strong short-term momentum in the stock market.
See More
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- Leadership Change: Kroger has appointed Greg Foran as the new CEO, effective immediately, succeeding interim CEO Ron Sargent, who has held the position since March 2025, ensuring a smooth leadership transition.
- Extensive Management Experience: Foran brings over 40 years of experience in leading consumer businesses, having managed operations across five countries, and most recently served as CEO of Air New Zealand, where he successfully led a company-wide digital transformation.
- Former Walmart Executive: Prior to his role at Air New Zealand, Foran led Walmart U.S. for six years, overseeing a turnaround of the company’s largest division until 2019, demonstrating his deep background in the retail sector.
- Board Membership: Foran will also join Kroger's board, further strengthening the company's governance structure, while Sargent will continue as Chairman of the Board to ensure a smooth leadership transition.
See More
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- Oracle Stock Rise: Oracle shares increased by 2% after DA Davidson upgraded its rating from neutral to buy, with analysts believing that a revamped OpenAI will regain its position as Google's top competitor, enhancing collaboration potential with Oracle.
- STMicroelectronics Partnership Expansion: STMicroelectronics saw a 7% stock increase following a multi-billion-dollar partnership announcement with Amazon Web Services to support infrastructure for cloud and AI data centers, which is expected to drive future revenue growth for the company.
- Kroger CEO Transition: Kroger's shares jumped nearly 5% after the Wall Street Journal reported that former Walmart executive Greg Foran will be appointed as the new CEO, indicating a potential strategic shift that could enhance the company's performance in a competitive retail market.
- Hims & Hers Health Crisis: Hims & Hers stock plummeted 18% after it withdrew its copycat weight-loss pill following legal threats from Novo Nordisk, highlighting the importance of intellectual property in the market and potentially impacting Hims & Hers' future product strategy.
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- Leadership Transition: Kroger has appointed Greg Foran as CEO effective immediately, succeeding Ron Sargent who served as interim CEO since March 2025, ensuring a smooth leadership transition.
- Extensive Industry Experience: Foran brings over 40 years of retail experience, having led Walmart U.S. for six years where he achieved positive comparable sales growth for 20 consecutive quarters, demonstrating his exceptional capability in transforming large retail operations.
- Digital Transformation Leadership: As CEO of Air New Zealand, Foran led a comprehensive digital transformation that improved customer experience and enhanced business agility, showcasing his ability to navigate complex challenges effectively.
- Ongoing Financial Commitment: Kroger reaffirms its fiscal year 2025 guidance, indicating the company's commitment to delivering sustainable value for shareholders, further solidifying its competitive position in the retail market.
See More
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- Leadership Change: Kroger has appointed Greg Foran as CEO effective immediately, aiming to advance the company's growth strategy; Foran previously led Walmart U.S. for six years, achieving 20 consecutive quarters of positive sales growth.
- Extensive Industry Experience: With over 40 years in retail, Foran has led large consumer businesses across five countries, particularly excelling in digital transformation, which will provide Kroger with a global perspective and innovative thinking for future growth.
- Ongoing Leadership Support: Ron Sargent will continue as Chairman of the Board to ensure a smooth leadership transition, with Kroger planning to provide further updates on this transition during its earnings call on March 5, highlighting the company's focus on stability.
- Financial Outlook Reaffirmed: Kroger reaffirms its fiscal year 2025 guidance, indicating a commitment to delivering sustainable value for shareholders, maintaining a positive growth outlook despite facing multiple market challenges.
See More
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Market Opening: U.S. stock markets are set to open in two hours.
Dynatrace Inc. Performance: Dynatrace Inc. (DT) saw a 13.9% increase in pre-market trading.
Kroger Co. Performance: Kroger Co. (KR) experienced a 5.0% rise in pre-market trading.
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