Ocado - Verdict Company Briefing

Ocado is the UK's only pureplay online grocery retailer. The retailer has a partnership with Waitrose which allows Ocado to source Waitrose branded and third party branded products. Capacity constraints at the retailer are hoped to be relieved in Q1 2013 with the opening of a second distribution centre allowing a return to double digit growth as the online grocery market grows

Report Scope

- Benchmark your performance in food & grocery with detailed key performance indicators across sales and space data for Ocado
- As a wholesaler or supplier, identify the unique potential of Ocado as a new retail partner by understanding its specialist range strategy
- Assess the UK online grocery market by understanding the only pureplay operation competitng with the Big Four

Key Highlights

Ocado faces the vitally important step in Q1 of 2012/13 of opening its new customer fulfilment centre. It is crucial that Ocado implements the upcoming change smoothly to maintain the confidence of investors and its lenders, the banks.

Providing better service than its rivals remains, to a very great extent, Ocado's unique selling point. To maintain this, it will have to continue to invest to make sure its systems are better than its competitors and probably sacrifice some margin to make sure operating resources are available to maintain and improve delivery standards.

Checkouts using mobile devices represented 24.0% of Ocado's orders in H1 of 2011 and it now has apps available for all major mobile technology platforms. As in other areas, its competitors are catching up. Continued investment in its mobile proposition in terms of content and usefulness will help to maintain its competitive advantage.

Reasons to Buy

- How will Ocado continue to grow sales as competition increases online
- What are the key threats and opportunities for this unique retailer
- How will Ocado's market share grow as CFC2 comes into operation