Positive growth for online grocery Ocado
Online retailer Ocado has posted encouraging third-quarter results, but experts say the company needs to move quickly to capitalise on that growth before it's too late
Print16 September 2015
The supermarket war in the UK is a crowded field, and the growing influence of online trading promises to make the battle a very interesting one int he coming years. All the of the major retailers have or plan to have a strong online presence, and newcomer Ocado, the online-only grocery retailer, is growing.
The company this week posted better-than-expected results for its third quarter, but the Financial Times reports that Ocado is yet to announced its long-expected deal with an overseas retailer. This deal has been hinted at before, and Ocado has confirmed it is in talks, but the company would want to get a move on following hints by partner Morrison’s that it is considering ending their relationship in order to expand Morrisons’ own online business.
Acccording to the Financial Times, Ocado reported a 15.3% rise in gross retail sales to £252m in the 12 weeks to August 9th, representing a 0.8% increase on predicted results but also a sligh slowdown on the first half.
Fiona Cincotta, market analyst at www.finspreads.com told ShelfLife that despite the positive news for Ocado, the markets showed signs of disappointment, with the company’s share price falling by 0.5%. “The lack of news regarding the overseas deal is making investors cautious as to the future of Ocado,” she said, “especially given the upcoming UK launch of Fresh, Amazon’s online grocery delivery service.”
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