During the pandemic, Ocado Retail was profitable but not scalable — it could not expand capacity quickly enough to take full advantage of soaring demand.
More recently, as the pandemic’s online shopping bubble has deflated, Ocado has found itself with excess capacity and losses. Its contribution to M&S’s latest results was a hit of £29.5m; analysts at Barclays expect losses to continue for the next two years.
Read the full article on the Financial Times website
NAM Implications:
- Some would say that Ocado is about the online expertise…
- …and the technology leasing/consultancy globally.
- At this rate, M&S might be able to pick up Ocado Retail for a song (provided they negotiate the freedom to offer fulfilment to other On/Offline retailers?)
