Coles shares have tumbled as much as 3.4% to A$17.02, marking their lowest point since January 24th.

This drop comes after the retail behemoth announced that it has received notification of a delay from Britain-based firm, Ocado, concerning the handover of an automated customer fulfilment center in Victoria.

In March 2019, Coles made an agreement with Ocado, outlining the construction and development of two automated customer fulfillment centers, one each in Victoria and New South Wales.

Coles commented that the Victoria center commissioning will face delays, with the incremental ramp period projected to commence in mid-FY25, while the New South Wales center will see a ramp-up period from the end of 2HFY24.

Coles stated that the delays could potentially escalate the project’s capital and operating expenditure by about A$70 million and A$50 million respectively.

Shares are on track for their worst day since March 2, given that the losses persist.

Coles' stock is emerging as one of the benchmark index’s top losers, yet shares remain up approximately 5.4% this year, up to the last close.

Coles Group (ASX:COL) is a large Australia-based retailer specializing in various products ranging from fresh produce to general merchandise.