Ocado saw ‘years of growth in months’ during lockdown

Ocado’s chief executive has said that shoppers will remain shopping online and there will be no ‘going back’ as a result of the lockdown.

Tim Steiner said the “world as we know it has changed” for retailers since the coronavirus crisis struck, and has predicted the shift towards internet shopping will not be reversed.

Steiner’s comments come as the company reported a 27% jump to £1.02bn in the six months to 31 May due to an “unprecedented” demand in online shopping.

Steiner said: “The world as we know it has changed.

“As a result of Covid-19 we have seen years of growth in the online grocery market condensed into a matter of months – and we won’t be going back.

“We are confident that accelerated growth in the online channel will continue, leading to a permanent redrawing of the landscape of the grocery industry worldwide.”

Retail expert James Grzinic at Jefferies said, “Ocado’s first-half results show the benefits from the surge in online demand brought about by Covid-19, albeit one temporarily enabled by consumers’ willingness to take very large deliveries in unusual slot times.”

Elliott Jacobs, EMEA Commerce Consulting Director at LiveArea said,“The comments from Ocado are yet another sign of the rise of eCommerce.

“Digital businesses that are able to effectively automate capacity to meet the demands of customers, both in terms of experience and delivery, will continue to flourish.

“Ocado has been able to hijack the market to become the fastest growing grocer in the UK. Expect more companies in the sector to follow suit and starting putting digital first.”