Ocado Group Plc's Chief Executive Officer, Tim Steiner, a co-founder, will step down at the beginning of the company's 2028 financial year. This decision follows a boardroom tussle and shareholder disagreements regarding Steiner's future, as the British online grocery delivery company contends with various setbacks and a significant decline in its stock value. Steiner will collaborate with the board to identify his successor and will transition into a "founder" advisory role within the company until 2029.
This leadership change occurs amidst a period of strategic adjustments for Ocado. Earlier in the year, the company announced plans to eliminate approximately 1,000 positions, constituting 5% of its global workforce, primarily in UK-based research and development roles. This measure aims to reduce costs, move into a less capital-intensive R&D phase, and decrease capital expenditure, driven partly by a reduction in demand from its largest customer, Kroger. Investors have reacted positively to this renewed focus on financial discipline.
Despite the challenges, Ocado's recent financial performance shows some signs of improvement. For the full fiscal year 2025, the company reported revenues of approximately $1.8 billion (£1.4 billion), marking a 12.1% increase. Adjusted EBITDA rose to roughly $240 million from $151 million in the previous year. Most notably, Ocado achieved a statutory profit of approximately $532 million, a reversal from a loss in the prior year, although accounting factors played a significant role in this improvement.
The company's partnership with Kroger has faced difficulties, with Kroger closing three customer fulfillment centers supplied by Ocado and canceling plans for a new site, resulting in a $350 million compensation payment to Ocado. Kroger has shifted its focus away from centralized fulfillment centers toward using its supermarkets for online order assembly. Ocado's stock, which peaked at over 2,000 pence ($27) in May 2021, has seen a substantial decline, losing more than 20% in 2026 alone. Despite this, Ocado is now exploring partnerships with other U.S. grocers after its exclusive agreement with Kroger ended.
