The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
The decisions were taken by the board of Ocado Retail which is split 50/50 between the 2 companies.
It is a joint decision making process
And the overcapacity came about because of the reaction to the COVID situation.
After a dip online share of grocery has started trending up again. As an idea of how high it could go it's at over 25% in South Korea.
The question is can OIA sell the OSP to US clients outside grocery without affecting the Kroger arrangement?
Maybe they can as the stipulation could relate solely to other grocery companies.
No one is trying to push any issues under the carpet.
Does your endless stream of negativity provide a balanced picture?
Only a fool values a company by the SP alone. If that were the case we could all pack up and go home.
Solutions revenue increased 44% last year. News can come out of nowhere with Ocado. Only time will tell if they succeed in their endeavours.
Incidentally, if there is serious talk of shifting to Nasdaq, then surely shorts would have to reduce risk.
Not sure what happens with borrowed shares if they are going to be exchanged for US issues. Even if the borrower can continue the contract and pay back with US stock there is then additional currency risk
This is what they are offering to e-commerce retailers like Amazon
https://ocadointelligentautomation.com/industries/consumer-packaged-goods
A guy from Amazon involved in warehouse automation liked an Ocado Intelligent Automation post on Automated Storage and Retrieval on LinkedIn.
Got me thinking how well suited the Ocado system would be for Amazon. I have watched videos of the use of robots in Amazon warehouses and they basically just move units stacked with products around for manual picking.
Maybe Amazon were interested in a bid for Ocado based on wanting to buy the tech rather than the business itself.
Either the offer was inadequate or existing contracts with partners meant that you had to buy the business not just the tech.
So maybe Amazon actually need to contract the tech to try out either as a pilot or at a particular site.
Would make sense given the growing tensions with them and their workforce. Increased efforts at organising labour in unions at their sites.
Wonder where a contract for OIA with any of Amazon, Shopify, Shein or Temu would take the SP?
I would like to know more about the marketing efforts of OIA and the strategy they are using to get contracts. Hopefully they are targeting big logos and not messing about with little fish.
You are complaining because one part of Ocado Group is not earning revenue from another part of Ocado group?
It would be so amazing if Ocado could sell more to themselves rather than to other international customers.
Is Ocado really a customer of themselves?
Apart from Kroger who else has paused commissioning new CFCs?
It's time to stop relating Ocado to any other retail players like Sainsbury's.
It's competitors are the likes of Autostore as per this quote from the City AM article.
"The news comes as shareholders have criticised some investors for not fully recognising Ocado as a technology firm, rather than principally an online grocer."
https://www.cityam.com/ocado-faces-investor-calls-to-abandon-london-listing-for-new-york/
It doesn't say that though does it because the article was written by an AI bot and is worthless.
The article that mentions the CFRA research was written by an AI bot.
It contains the following quote
"Ocado's key partner, Kroger (NYSE:KR), has also shifted its strategy, moving away from the initial goal of a home delivery service."
Someone had better tell Kroger this as they don't seem to be aware. They were cheering online sales growth of 12% recently. On their investor call they said they are effectively in the 1st innings of a World Series in terms of where they want to go with growing sales online. They believe that in future they may get a lot closer to in store revenue.
One of the Miami warehouse employees on Reddit said they are going to open a new warehouse in Cocoa Beach and there are job adverts posted for that in the last few days.
Apparently order volumes were higher there
This Reddit thread is pretty informative. Worth reading replies to any of the comments.
A number of unhappy customers who were sad to lose the Kroger delivery as very good service.
https://www.reddit.com/r/kroger/comments/1bodhs9/kroger_delivery_closing_spokes/
Are you for real? CFCs were the only thing of interest to anyone and no one cared much about spokes or was aware of them.
I have also never heard anyone talk about 40 Kroger CFCs.
One reason for opening spokes was to use up spare capacity at the CFCs. Now it could be that they have had demand increasing in areas closer to the CFCs making the spokes somewhat surplus to requirements.
In an article on the closure of the Miami spoke it said they are going to be opening another warehouse (spoke) in Florida shortly.
On Reddit there is a thread with customers and employees discussing the spoke closures. One employee said it was because volumes were not high enough to justify the miles and that Kroger failed to do any marketing.
Also Miami residents are more likely to want small same day delivery rather than larger next day ones. Competition is intense there with Aldi and Public.
As for Instacart they are fine for small baskets but there vans aren't refrigerated so limited for cold or frozen food.
Also if you are interested in nuance then I am surprised you don't mention Kroger celebrating significant online sales increases on their most recent investor call.
VP- this has been explained to you already.
Kroger said that closing the spokes has zero impact on the red of the CFC and spoke network.
The spokes are nothing more than sites where lorries with orders packed at the CFCs are transferred to delivery vans.
They do this to increase the reach of the CFCs for example to 200 miles from the CFC.
This didn't work at the sites in Florida and Texas because Kroger has minimal brand recognition there and they messed up the marketing.
If what you say about closing spokes is true then perhaps you can explain why opening spokes has never led to SP rises?
Yeah but you would think they could have pushed harder
Given the hit that markets have been taking this week it's surprising that shorts haven't been more aggressive?