I'm still on holiday at present so I think I'll wait for the results to be announced, as Tim Steiner has already pointed out they're focusing more on their core customers now rather than constantly sending vouchers out to punters who'll never come back. I'm only expecting a circa 10% increase on the next IMS.
Sales for June-Aug 2014
Thinking about the next announcement on 11th Sept, I've been looking at shopping prices as reported by Which for June-July 14, compared with the same months in 2013. The Which monthly basket costs for Ocado, Tesco, Waitrose and Sainsbury are all down by 9 to 10%. For Ocado the basket cost drops from £212 to £191, or 10.3%. Ocado sales growth for 3 summer months of 2013 over 2012 was 16%. If the Which averages carry through to 2014 sales, it could mean only 6% growth on the underlying Ocado business. Even if you add in 5% for MRW it's 11%, but then again the MRW contribution must have been expected to be additional, as opposed to being needed to get to a respectable number. And this is just the top line impact without discussing margins. Please correct me if my numbers or assumptions look wrong
Team Leader C&C
Here's the link if you want to apply for the click and collect position ! http://m.monster.co.uk/138289232
I did mention Ocado's click and collect a few weeks ago which has been trialled at head office as far as I'm aware, they're currently looking to introduce this through further innovation which will operate differently to the norm, we'll have to see what they've developed as and when it's ready to be rolled out
Waitrose can do nothing until 2017 so we're a few years away from that situation, you may have noticed Ocado already do their own label brands which are increasing to minimise any future impact. I remember arguing with someone on here or ADVFN about banana's, at the end of they're all the same. Tesco's problems lie in what was the race for space which now is starting to look a bit naive, they're trying to be everything to everyone and the strategy isn't working which you can see from the declining SP. They have to decide which channels they need to focus on to sustain the divi which I believe will be cut. Interesting times we live in. Ocado were never going to make billions from groceries but they can make billions showing others how it's done
The only worry with Ocado is just how much have they irritated the John Lewis partnership.. Will waitrose look to take their fight legal?? Or have they??
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