Kroger admits that it overextended its investment in robotics.

Kroger's recent decision to close three robotic e-commerce fulfillment centers marks a significant shift from its earlier confidence in automation for online grocery profitability. Just months prior, the company expressed plans to expand its partnership with Ocado for high-tech facilities. However, as performance benchmarks were not met, Kroger paused development on the Ocado project and shifted focus back to its physical supermarkets. This strategic pivot, aimed at improving e-commerce profitability with a projected $400 million boost, comes with an estimated $2.6 billion in charges, reflecting broader industry challenges in grocery e-commerce.