Ocado has doubled in the past six months as a pandemic prompts families to shop online
Ocado first achieved half-yearly sales of £ 1 billion when founder Tim Steiner declared “the world has changed.”
The coronavirus pandemic has pushed millions of families onto the Internet to do their shopping, with the strongest turnout among those over 65.
The group reported a 27 percent increase in retail sales to £ 1 billion due to ‘unprecedented’ demand in the six months to May 31.
Ocado reported a 27 percent increase in retail sales to £ 1 billion due to ‘unprecedented’ demand in the six months to May 31
As a result, retail earnings rose 87 percent to £ 45.7 million, after taking into account the additional costs of employee bonuses, testing and personal protective equipment.
Steiner, who founded the company 20 years ago, said, “The world as we know it has changed.
As a result of Covid-19, we have seen years of growth in the online supermarket market decay in a matter of months – and we will not be going back. ‘
He added that he was confident that this would lead to a “permanent redesign of the landscape of the grocery industry worldwide.”
The group was still at a loss as it boosted investment in high-tech robotic warehouses for supermarkets abroad.
But the loss narrowed from £ 147.4 million to £ 40.6 million.
It also opened its first robotic distribution warehouses for Casino in Paris and Toronto.
Searching to replace President Rose begins
Retirement: Lord Rose has been Chairman of Ocado since 2013
Ocado has started chasing a successor to Lord Rose, who has been the president of the online grocery since 2013.
The former Marks & Spencer boss, who has participated in the campaign to keep Britain in the EU, is one of the city’s best-known businessman.
He plans to step down next year and could focus on private business interests.
Rose, 71, was an early victim of coronavirus.
When recovering, he said he “felt like I had been hit by a bus.” For Ocado, the virus was a boon that gave the online supermarket industry a huge boost.
If Rose were to leave today and sell his shares, he would earn £ 8.9 million – £ 4 million more than in April.
It sold £ 1.6 million in February, after two sales of around £ 7.3 million in May 2019.
Yesterday, Ocado founder Tim Steiner said, “He’s been with us for eight years, but we have no official comment.”
During the lockdown, the share of groceries sold online rose from 7 percent to 14 percent, and Steiner predicted it would double again in the coming years.
Monthly online sales in the UK increased sixfold in August compared to the same month last year and doubled in China, Ocado said.
The rapid change around the world has boosted the stock price and increased Steiner’s wealth.
Although the stock fell 2.2 percent yesterday to 1988.4 percent, they have gained 87 percent since late February. Steiner’s interests are now worth £ 538 million.
The group raised over £ 1 billion last month by issuing shares and bonds to support growth.
It will also be used to enroll new partners to use the technology and to invest more quickly in innovation.
Retail expert James Grzinic, at Jefferies, said: “Ocado’s first half year results demonstrate the benefits of the surge in online demand caused by Covid-19, although this was temporarily made possible by consumer willingness to make very large deliveries in unusual times. ‘
In the hour that Boris Johnson announced the closing in March, Ocado had as many visitors to his website as in the previous quarter.
The company now has 1 million customers on the waiting list when it can build more warehouses and boost demand even further
It is hiring 500 technology personnel in the UK and will increase capacity for domestic buyers by 40 percent next year with three new warehouses.
FTSE 100 has suggested that as the online supermarket market expands, traditional supermarkets such as Tesco and Sainsbury’s may not compete with its robot version.
Currently, they use workers to collect goods for deliveries by walking around the store, limiting the number of orders that can be physically picked up.