Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Needs to drop about 1/2 £bln in value to drop out of ftse100
sitting on fence, still undecided about OCDO but always has appealed - so confusing what its up to lately
"...Please stop spreading needless doom and gloom without having all your facts."
Heres some facts for you to ignore
- Shareholder revolt over bonus
- M&S litigation
- Ocado spokes being shut down
- SP trending down
- Soon to drop out to 250
- Ocado tech never became profitable, and never will now that it is a legacy platform
When the money runs out and Steiner has raided loan options to survive (After taking huge dividends), this share is more likely to end up as another "Cineworld" .
The facts are that 3 Kroger spoke sites are closing.
"A spoke site has no bearing on the overall Ocado solution performance."
Obviously it reflects badly on the Ocado Solution model. Considerable cost and development time has been used up in creating these now redundant spokes. Clearly Kroger are finding it harder than they envisaged to break into grocery markets where they have no physical stores using the Ocado Solutions model. The read across is that any further Kroger Ocado rollout will occur in a slower manner and across a smaller geography than previously thought.
CFC is a Customer Fulfilment Centre, i.e. automated warehouses such as the ones at Luton, Bristol, Purfleet, Honda, Cincinnati, Groveland
'Spoke' is a last-mile distribution centre, that acts as an extension of the CFCs (Hub). Ocado has upwards of 20 across the UK, as does Kroger across the US. There is no such thing as a Spoke CFC. That's just clickbait to generate traffic.
While still bad news, closing down a spoke is not nearly as dramatic as shutting down a CFC. A spoke site has no bearing on the overall Ocado solution performance.
I've been lurking around here long enough to know that you thrive on the slightest of negative Ocado news, but please stop spreading needless doom and gloom without having all your facts.
If Ocados technology "did not meet the benchmarks we set for success.” to use Kroger's words, then it's unlikely imv that Amazon will step in. Amazon are already successfully utilizing other grocery delivery technologies.
I agree with what you say however there is a silver lining if Kroger withdraw...
Amazon will almost certainly step into the fold. Possibly we are looking at a rocky road in the short term, but if Kroger "get off the pot" then finally we can have Amazon start buying in.
Kroger partner with other online grocery delivery firms, Instacart and Shipt for example. A logical assumption after todays news is that Ocados share of Kroger's online delivery pie will be less than previously thought.
It is concerning, but Kroger have recently emphasised their commitment to e-commerce and I assume that means to include Ocado.
Yes, as outlined they are spokes. The fact they are closing shows poor customer demand and an underperformance of Ocados solutions.
As these centres close Kroger could, if truly committed, mention upcoming new CFC commissions but they pass up that opportunity.
Kroger, as 5% shareholders of Ocado group have to voice their support for the rest of their Ocado CFCs. This though has to be put in some doubt after today's announcement.
A very misleading title, as are most Ocado related news. They are closing down 3 distribution hubs, also known as 'spokes', not automated fulfilment centres. These are last-mile delivery hubs.
https://www.supermarketnews.com/retail-financial/kroger-plans-shutter-miami-spoke-warehouse
"The 60,000-square-foot, cross-docking facility, dubbed the “Miami Spoke,” was built to extend the reach of the company’s automated fulfillment center in Groveland, Fla., to the Miami area, but it had been underperforming expectations, the company said."
https://www.costar.com/article/235616893/kroger-returns-to-san-antonio-market-with-distribution-center-for-food-delivery-service
"But Kroger's comeback to the area isn't with a typical brick-and-mortar store. Kroger signed a 67,008-square-foot lease for a distribution center at the Centerpoint Logistics Park that serves as a last-mile delivery hub."
https://finance.yahoo.com/news/kroger-close-3-e-commerce-173433509.html
"The upcoming closure of the three spokes does not impact Kroger and Ocado’s other automated fulfillment centers, Martin said."
Not a good indication for the future of Ocados Kroger relationship, also it won't help attract new grocery partners to sign up to Ocados delivery solutions.
https://progressivegrocer.com/kroger-closing-3-ocado-powered-e-commerce-fulfillment-centers
"The Kroger Co. has come to the end of the road with three of its e-commerce fulfillment centers. Ocado-powered facilities in San Antonio and Austin, Texas, as well as one in Miami, are set to close on May 25, with a spokesperson for the grocer saying they “did not meet the benchmarks we set for success.”
“Kroger’s commitment to innovation means that we test and learn quickly to identify the most effective ways to deliver fresh, affordable food to our customers,” said the spokesperson, adding that despite its best efforts and support from new customers, the facilities did not see the type of success the grocer expected."