Roundtable Discussion; The Future of Mineral Sands. Watch the video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksOcado Share News (OCDO)

Share Price Information for Ocado (OCDO)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 355.60
Bid: 357.00
Ask: 357.50
Change: 0.00 (0.00%)
Spread: 0.50 (0.14%)
Open: 0.00
High: 0.00
Low: 0.00
Prev. Close: 355.60
OCDO Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Ocado under pressure from grocery price war, says Shore Capital

Mon, 28th Apr 2014 10:25

Shore Capital has reiterated its 'sell' recommendation for on-line grocery group Ocado, saying that margins are facing negative pressure from the current price competition amongst UK food retailers.The comments come after recent developments at retail giant Tesco, which said that it intends to invest more in base pricing in the UK."We believe that this is a negative development for Ocado in particular, as the online specialist matches Tesco's prices. As part of the realignment of its value proposition, Tesco also seeks to reduce its voucher activity and ease back on promotions too, an aspiration shared by its peers although it is proving harder to do than talk about. A move away from promotions will expose Ocado to greater price comparison."Shore said that major players Tesco, WM Morrison and Walmart-owned Asda are currently engaged in a "race to the bottom" on prices as they look to stem the momentum of the discounters."Unless Ocado removes its price matching pledge with Tesco, we see its gross margin coming under greater pressure as the market leader sustains price cutting. Ocado does not match Tesco's promotions and so a re-allocation of resource by Tesco to price is troublesome to Ocado in our view."Tesco is also now offering lower costs for online grocery deliveries and a free 'Click & Collect' service, which could have an impact on Ocado: "Whilst switching between Tesco and Ocado online customers may be low to our minds, the lowering of fulfilment costs cannot be seen as a welcome development for the specialist online player."Shore also said that it remains "underwhelmed" by Ocado's business model and believes that key customer Waitrose will "do its own thing in time, creating an enormous hole at Ocado's Hatfield [warehouse]". Meanwhile, the broker added it "remain[s] to be convinced that the Morrison tie-up will work for either party".The stock was 0.5% lower at 329.9p by 10:59 on Monday.BC
More News
22 Apr 2024 08:49

LONDON MARKET OPEN: Hipgnosis jumps on Blackstone rival offer

(Alliance News) - Stock prices in London opened higher on Monday, as investors shook off nerves ahead of a key US inflation reading later this week.

Read more
22 Apr 2024 07:41

LONDON BRIEFING: Hipgnosis supports Blackstone takeover bid

(Alliance News) - Stocks in London are called to open higher, as investors eye some key FTSE 250 takeovers.

Read more
21 Apr 2024 16:47

Sunday newspaper round-up: IDS, Ocado, Foxtons

(Sharecast News) - Asset manager Redwheel told regulators they should reduce the UK postal service's legal obligations. The move followed a failed buyout attempt by Daniel Kretinsky for International Distributions Services, its parent company. The billionaire investor was said to be evaluating a possible improved bid. The company meanwhile has petitioned Ofcom to let it cut the number of days per week during which it must deliver second-class mail from six to two or three. That would save the company £300m and see it shrink its workforce by 1,000. According to Redwheel, as first reported by the Sunday Times, the enforced costs of its legal obligations left the company "vulnerable to corporate predators". - Guardian

Read more
21 Apr 2024 09:51

PRESS: Ocado facing call to shift listing from London - Telegraph

(Alliance News) - Ocado PLC has faced investor pressure to consider a listing in New York, the Telegraph reported on Saturday.

Read more
10 Apr 2024 16:52

LONDON MARKET CLOSE: New York stocks tumble as US data dashes cut hope

(Alliance News) - European stocks closed off session highs on Wednesday, while equities in New York struggled, after a robust US inflation reading which potentially pushed the first Federal Reserve rate cut of the cycle further into the future.

Read more
10 Apr 2024 11:56

LONDON MARKET MIDDAY: European stocks get boost ahead of US inflation

(Alliance News) - Stock prices in London were higher at midday on Wednesday, despite some nerves centred around the latest US inflation rate reading, out this afternoon.

Read more
8 Apr 2024 16:52

London close: Stocks rise at start of busy week

(Sharecast News) - London markets closed with gains on Monday as investors exercised caution ahead of key events later in the week.

Read more
5 Apr 2024 17:31

London stocks log weekly declines on geopolitical, rate uncertainty

FTSE 100 down 0.8%, FTSE 250 off 0.7%

*

Read more
5 Apr 2024 15:22

London close: Stocks finish lower as US payrolls top forecasts

(Sharecast News) - London markets closed lower on Friday amid a backdrop of heightened investor caution, following robust US job data for March, hawkish remarks from Federal Reserve officials, and escalating tensions in the Middle East.

Read more
4 Apr 2024 17:04

UK stocks climb on boost from auto, mining stocks after upbeat data

Ocado drops as chairman to step down next year

*

Read more
4 Apr 2024 15:58

London close: Stocks manage gains ahead of US payrolls report

(Sharecast News) - London markets closed higher on Thursday, driven by a robust showing from the mining sector and as investors contemplated the UK services sector's latest figures.

Read more
4 Apr 2024 10:05

TOP NEWS: Ocado chair to step down to focus on NatWest role

(Alliance News) - Ocado Group PLC said on Thursday that its chair intends to step down next year, as "pressure" on his time will grow after taking on the position at lender NatWest Group PLC.

Read more
4 Apr 2024 08:03

Ocado chair Haythornthwaite to step down next year

(Sharecast News) - Ocado said on Thursday that chairman Rick Haythornthwaite will be stepping down next year "due to his increasing commitment" as the recently-appointed chair of NatWest.

Read more
4 Apr 2024 07:43

LONDON BRIEFING: Vodafone-Three deal faces deeper UK probe

(Alliance News) - London's FTSE 100 is called to open higher on Thursday, despite remarks from Federal Reserve Chair Jerome Powell failing to soothe lingering interest rate worries.

Read more
2 Apr 2024 15:22

London close: Stocks turn red on return from Easter break

(Sharecast News) - UK stocks experienced a downturn by the end of trading on Tuesday, as investors resumed activity following the extended weekend, with initial gains reversed by the close ahead of a week marked by a number of key economic data releases.

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.