Our Investment Case

Grocery retail is the largest retail market in the world and it offers vast opportunities.

The market has been gradually moving online since the mid-2000s, a trend accelerated during the Covid-19 pandemic when online penetration doubled in many regions.

It’s now stabilised at a higher level than before the pandemic, and analysts forecast growth and increased penetration of the overall grocery market. For long-term success in this channel, retailers worldwide must continue developing their online offerings.

We have 13 partners across who represent more than £300bn in annual sales.

Together, these partners have announced CFCs, equivalent to over >£20bn in annual sales at capacity through the OSP platform.

As partners scale, the multiplier we achieve on innovation grows with them, and learnings enabled by our partnership community expand. This further accelerates our virtuous cycle of growth, investment and innovation.

The Ocado Smart Platform is a flexible platform offering a leading customer proposition and attractive economics for partners. Our proprietary technology is battle-tested and protected by over 2,600 patents filed or granted.

We enable solutions across the whole spectrum from In-Store Fulfilment to Dark Stores and Automated Warehouses of varied sizes, to adapt to the needs of individual partners and their markets, in order to drive the best possible results.

Our heritage as the UK’s largest pure-play online grocer through Ocado Retail LTD (now a 50:50 joint venture with M&S), and expertise in high-performing logistics and fulfilment through Ocado Logistics, has equipped us with technology innovation, expertise and operational know-how to enable our partners and customers to achieve scalability and success.

Our Ocado Re:Imagined innovations are seven technology solutions that raise the bar for operating and capital efficiency for our partners and opportunities in the automated storage and retrieval space. Our Ocado Re:Imagined initiatives are expected to increase UPH to over 300 and reduce the capital intensity of the solutions by c. 15%.

This leap forward also means that our leading technology is now price competitive in markets beyond grocery; a serviceable opportunity we value at $130bn. We signed our first client, McKesson Canada, in 2023.

Retailers worldwide are looking for ways to reduce their carbon footprint, lower their energy usage and improve food waste management.

As a facilitator of online grocery operations, Ocado Group has a key role in making this happen through our technology.

Learn more about our sustainability journey.