Ocado Regulatory News (OCDO)

THIS ANNOUNCEMENT RELATES TO THE DISCLOSURE OF INFORMATION THAT QUALIFIED OR MAY HAVE QUALIFIED AS INSIDE INFORMATION WITHIN THE MEANING OF ARTICLE 7(1) OF THE MARKET ABUSE REGULATION (EU) 596/2014, AS AMENDED (AND INCLUDING AS IT FORMS PART OF UNITED KINGDOM DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED).

Ocado Group plc

29 January 2026

Ocado Group plc

Update on Sobeys Partnership

Ocado Group ("Ocado") has announced an update to its partnership with Sobeys following a period of engagement to ensure the partnership is appropriately structured to drive long term, sustainable growth. Following those discussions, Empire Company Limited has made an announcement today related to Sobeys' e-commerce operations in certain Canadian geographies.

Following an assessment of e-commerce demand in key markets, Sobeys has decided to close its CFC in Calgary largely due to the Alberta grocery e-commerce market's size and the rate of expansion being slower than originally anticipated.

With improving e-commerce penetration and high-growth potential in Ontario and Quebec, Sobeys will continue to serve customers through its Ocado-enabled Voilà banner in those regions, supported by its two existing CFCs in the Greater Toronto and Montreal areas.

Ocado is deploying new technology into Sobeys' operations in Toronto and Montreal, including the delivery of 'Ocado Swift Router', a functionality designed to enable a higher proportion of same day and short-lead time orders to be served from CFCs. This also includes the option for Ocado-fulfilled orders to be integrated with third party platforms, such as online aggregators. Ocado and Sobeys have also agreed on a number of further actions to place the partnership on a strong footing for continued long term growth.

In addition, and as previously communicated, the companies will continue the pause on development of its CFC located in the Vancouver area. The go-live timeline for that site remains under regular review, with the site able to commission and scale quickly when required. In addition, Sobeys continues to use Ocado's AI-powered in store fulfilment software across 87 stores nationwide.

Tim Steiner, CEO of Ocado Group, said:

"Sobeys is an important partner to Ocado, and we have taken a pragmatic approach to refining the network and placing our partnership on the right footing to secure long-term, sustainable growth in the Canadian market. This has meant addressing some key challenges from early network planning decisions, in particular where the market has not developed as anticipated. It has also led to agreement on deepening our partnership in key markets"

"Online grocery in North America has continued to develop, and Ocado's technology has evolved significantly since our first CFCs were launched in the region. The changes we have made in our relationships with both Sobeys and Kroger represent a reset of our North American business, placing those partnerships in the best position to secure long-term growth, while reopening a substantial market for Ocado's much evolved technology"

Expected financial impact:

Ocado expects to receive compensation during the current financial year of £18m for the closure of the CFC in Alberta. The closure of the CFC in Alberta is expected to reduce Ocado's fee revenue by £7m in FY26.

Ocado reaffirms its priority of turning cash flow positive during FY26, driven by continued growth in live and new sites, and underpinned by rigorous cost and capital discipline.

Contacts

Tim Steiner, Chief Executive Officer

Stephen Daintith, Chief Financial Officer

Nick Coulter, VP of Group Capital Markets and FP&A (investor.relations@ocadogroup.com)

Jamie Kerr, Director of Communications (pressoffice@ocadogroup.com)

Lucy Legh, Matt Denham, Jack Gault at Headland Consultancy - (ocadogroup@headlandconsultancy.com), on +44 (0) 20 3805 4822

Further information about Ocado is available on its website at www.ocadogroup.com.

Person responsible for arranging release of this announcement:

Mollie Stoker

Group General Counsel and Company Secretary

Ocado Group plc

Buildings One & Two Trident Place

Mosquito Way

Hatfield, Hertfordshire

AL10 9UL

Email: company.secretary@ocado.com

Ocado Group plc LEI: 213800LO8F61YB8MBC74