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Ocado

In:

Submitted By Wamuyu12
Words 1885
Pages 8
29th June 2012
Analysts raised concerns about its financial position and its investment in a second warehouse, while competition continues to increase, including from its main supplier Waitrose and Tesco's move to increase its Click and Collect service.
Many in the industry believe a standalone online operation is at a disadvantage without a physical store to help defray costs.
We believe the underperformance is due to continued concerns on Ocado's capacity expansion capability and the potential impact from rising competition on its revenue growth.

29 June 2012
Online grocery retailer Ocado is planning to increase its non-food offer with the launch of dedicated general merchandise websites

26th June 2012
Online grocer Ocado increased its delivery performance by six per cent in the first half to 150 deliveries per van per week, reaching a peak of 165
Chief executive Tim Steiner said: "The last six months has been all about delivering our plans to increase capacity, efficiency and range and enhancing our offer to customers.”
On-time delivery performance and order accuracy also improved during the period to 93.2 per cent and 98.3 per cent respectively, the company said.
New picking capacity was added to at Hatfield (CFC1) during the period including a new large storage and picking machine which, once fully live, will have the capacity to both significantly extend the product range, as well as to remove the remaining ambient manual trolley picking operations over the next half year, improving efficiency and capacity.
EBITDA rose 4.5 per cent to £14.9m on sales up 12 per cent to £332.3m. Steiner said: “We are pleased that sales growth was in line with market expectations. However, the grocery market and the general economic picture remain challenging and uncertain. The third quarter is particularly hard to forecast as we have already seen some disruption

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