Online grocer Ocado is vying with supermarket giant Tesco to be the UK's most valuable retailer
- Online grocer
Ocado's stock market value has risen to £21.66 billion ($27.8 billion) – briefly making it the UK's most valuable retailer, ahead of Britain's biggest grocery chain, Tesco.
- Ocado only has a 1.7% share of the grocery market, according to Kantar, but saw sales jump 52% in the quarter to August.
- But it is uncertain how long this boom in grocery delivery will last after overall UK online food sales fell nearly 5% between July and August.
View all Offers
OnePlus Nord 2 5G (Blue Haze, 8GB RAM, 128GB Storage) I Extra upto Rs.1000 off on Exchange₹ 29999Buy On
OnePlus Nord 2 5G (Gray Sierra, 8GB RAM, 128GB Storage) I Extra upto Rs.1000 off on Exchange₹ 29999Buy On
- 19% OFF
Redmi Note 10 (Aqua Green, 4GB RAM, 64GB Storage) -Amoled Dot Display | 48MP Sony Sensor IMX582 | Snapdragon 678 Processor₹ 12999₹ 15999Buy On
- 18% OFF
Redmi 9A (Nature Green, 2GB RAM, 32GB Storage) | 2GHz Octa-core Helio G25 Processor | 5000 mAh Battery₹ 6999₹ 8499Buy On
- 53% OFF
Echo Dot (3rd Gen, Black) + Wipro 9W LED Smart Color Bulb combo - Works with Alexa - Smart Home starter kit₹ 3099₹ 6598Buy On
The company is the top performer in London's FTSE 100, with a 108% gain in the year to date, compared with a 23% loss in the broader index and an 11% decline in shares of Tesco itself.Tesco is in the middle of a change in management this week. CEO Dave Lewis stepped down after six years and, from Thursday, will be replaced by Ken Murphy.
Ocado's boom during the pandemic
Ocado reported a 52% sales jump in the quarter to August, with an average of 345,000 weekly sales.But Tesco is hot on Ocado's heels. The group said in August it is hiring for 16,000 new jobs to facilitate online orders because of "exceptional growth" in sales. On September 1, Ocado switched the range of products it offers to M&S, from Waitrose, both upmarket grocery chains. It reported that customers had responded "positively" to the change, and said shoppers were adding more items to their orders.
But the partnership didn't have the smoothest start, after customers complained about order cancellations. But the launch day was biggest ever for forward deliveries, Ocado said. Under the agreement, Ocado can also sell around 700 product lines from M&S's home and lifestyle ranges.
Ocado also sells technical solutions to other grocers through its Ocado Solutions arm. The service gives retailers access to the company's warehouse operation solutions and software. The first distribution center through the partnership opened in March in France, despite COVID-19-related disruption. Ocado Solutions now has partnerships with Kroger in the US, Sobeys in Canada, Morrisons in the UK, ICA in Sweden, Group Casino in France, and Bon Preu in Spain.
Falling online grocery ordersBut it is uncertain how long this boom in online deliveries will last. UK online food sales were nearly 5% down in August compared to July as customers returned to supermarkets — but British shoppers are still spending nearly twice as much on grocery deliveries than last year, according to recent data from the Office for National Statistics.
Total food sales across both online and physical stores fell by around 2% from July to August. Britain's "Eat Out to Help Out" scheme – which saw diners eat more than 100 million meals out in August as part of a government-subsidized scheme to boost the hospitality industry – caused supermarket sales to plummet by £155 million ($201 million) in August, research by Kantar shows.
Not only are
- Nestle India, United Breweries, Tatva Chintan Pharma Chem and other stocks to watch out for on July 29
- India has limited options for weapons that can take down enemy drones
- International Tigers Day: Ten most interesting facts about the beautiful beasts
- Rolex Rings IPO gets subscribed 3.84 times on the first day of bidding
- If Spotify was a country, it would be bigger than the US as subscriber count hits 365 million