In response to the news this morning that Ocado fell to a £214.5million loss last year, Daniel Harvey, a Manager at management and technology consultancy, BearingPoint, said:
“Notwithstanding the implications of Ocado’s Andover fire, UK Retail growth hit 10.3% in 2019 delivered in part through greater operational efficiency. Therefore, the demand is there; stable and sustainable profitability needs to come for the company.
If they can position it effectively, Ocado are in a unique position to leverage their technology IP and sell this capability overseas, without investing a penny (or a cent) in physical infrastructure. The chosen track seems to be the offer of a complete end-to-end technological and physical solution – as illustrated in Sweden. But, could a platform model generate profitable income in the shorter-term to fuel growth, helping to combat the 2019 pre-tax loss of £214.5m? The question which has always lingered around Ocado remains; are they a technology business with distribution capability (‘Ocado Solutions’) or are they a distribution business who develop their own systems (‘Ocado Retail’)? The debate continues as they deliver progress on both fronts.
As the UK’s sustainability challenge heightens, Ocado could be uniquely placed to drive a grocery home delivery platform revolution; with Morrisons and M&S the key 2020 partners, who’s next?”