Home shopping/sp28 May 2020 23:36
Apparently Tesco makes £6 on £100 spent on dot com where as it £3 -4 profit for £100 spent in store , well that’s what they tell us I still reckon it’s loss maker, However with Ocado a robot picks a 100 item shop in 10 minutes for the price of electricity( I know someone needs to maintain them but no holiday to pay or pension etc on the robots) anyhow it takes about 45 minutes for someone to pick that same 100 items in store at a cost of approximately say £5 , so we have at a peak 570 orders going out of dot com at a max 80 items per shop so for arguments sake average £3.50 cost to pick per order as not everyone one will want 80 items so that’s close to £2,000 a day to pick plus employers tax , pension it’s probably £2,500 or nearly 18k a week wages . What do the robots cost, or to maintain I’d say Ocado is the only one that makes a profit, they’ve also increased sales 33% year on year so M&S should do well on the food side going forward..
Share price wise, well look at the other shares rocketing upwards now while this dog barely moves. Yup money’s safe here, but if you want a better return there’s value still out there and good yields to be found when re introduced.