Ocado, Online grocer platform, says the shift to internet shopping due to the coronavirus lockdown has led to a “permanent redrawing” of the retail landscape.
The company’s comments came as it said sales during the first half of the year jumped 27% to more than £1bn.
Tim Steiner chief executive said “The world as we know it has changed”.
He added “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.”
He said Ocado was now the fastest growing grocer in the UK, and he believed, 50/50 partnership with Marks and Spencer is the reason behind it.
John Moore, senior investment manager at Brewin Dolphin, said “There is evidence to suggest many shoppers will likely continue buying their groceries online once lockdown measures have been lifted completely, but it will be difficult for Ocado to maintain the sales registered at the peak of the crisis”,.
“Nevertheless, Ocado has a strong balance sheet and the Covid-19 pandemic has super-accelerated many of the trends that have led to its exceptional share price growth over the last few years, placing the company in a good position for the future.”
Tesla and Twitter stock has dropped this week as investors digest the ramifications and probable legal difficulties surrounding Tesla CEO...Read more