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In management you always act as a trend emerges rather than when the trend is set in stone.

Jtan,

Patients in general do not go straight to hospital with covid. Takes on average 7 days from symptoms start to hospitalisation.

The hospitalisations are just starting to become evident. As Omicron doubles every 3 days the hospitalisations have a long way to go upwards...

Jtan, The UK is on the very early stages of Omicron. Hospitalisations rising in London is a sign of what's to come for the country...

There is no evidence Omicron is less severe than Delta. Omicron cases will be far higher than Delta.

https://www.ft.com/content/020534b3-5a54-4517-9fd1-167a5db50786

The UK government is only now waking up to the severity of the situation...

There's every reason to put restrictions in now Jtan. The challenge to all governments is flattening the Omicron expected hospitalisation curve so a nations healthcare system can cope not crumble.

If the shoe was on the other foot and France had higher Omicron cases and was doing little to stop the spread then Boris would put restrictions on France as a matter of course.

"Germany is doing what France is doing, it's a political game, nothing more.
Who the heck goes to cold countries in winter anyway? To Ski?"

Large amount of lucrative business travel from the UK to Europe in winter. If Boris isn't tough on Omicron curbs many other countries will follow with UK travel bans..

The full stop to the pandemic looks to be the catch all covid vaccine that will defeat any variant. That's due in mid 2023 though...

https://www.dailymail.co.uk/news/article-10313513/Prepare-18-MONTHS-Covid-chaos-says-Chris-Whitty.html

It's been long said there would be no more lockdowns however another looks to be on the horizon...

https://news.sky.com/story/covid-19-officials-drawing-up-plans-for-two-week-post-christmas-lockdown-over-omicron-threat-reports-say-12498746

Ocado retail, with its expanded capacity, well placed to deal with the huge increase in online grocery demand.

https://www.grocerydive.com/news/kroger-soft-launches-delivery-service-from-large-scale-atlanta-cfc/611709/

3rd large (300,000sq ft+ ) CFC opened by Kroger. Soft launched, capacity ramping up.

Ocado Solutions believed to receive around 5% of all value of all goods passed through overseas CFCs in fees. The cash flow to Ocado is increasing...

https://www.theguardian.com/business/2021/dec/17/online-grocer-farmdrop-goes-bust-cancels-christmas-deliveries

Survival of the fittest is occuring in the UK online grocery industry.

"But earlier this year it warned “the growth in orders and sales has not translated into profitability”

The above is of course the key challenge for online grocers. Doing the business online not such a challenge, doing it profitably is extremely difficult. It is where Ocados automated solutions are a standout option for grocers all over the world.

SFH300,

Currently they coexist. In the UK delta rates are broadly stable whilst Omicron rates are rocketing upwards as it is far more transmissible. As this trend continues I would expect there to be less people for Delta to infect as more and more have Omicron. Thus delta should start to wane.

Heard some talk of the ability for people to catch both variants at the same time but I think that's unlikely. One will supercede the other.

How do you see this issue panning out?

GOLDMAN SACHS RAISES OCADO PRICE TARGET TO 2,280 (2,275) PENCE - 'NEUTRAL'

Zoom distribution centres are on light industrial estates. There would be many issues using them as a click and collect point.

Firstly it would devalue the brand image. Ocado customers pay premium prices or a premium product. The customer collecting their shopping in an industrial estate clashes with that image.

Zoom hubs would need to offer separate entrances and extra car parking. As seen in the planned contentious Islington zoom hub extra traffic levels raise residents objections.

Ocado are having difficulty finding appropriate zoom hubs as good warehousing sites are in short supply in cities. Having to find extra car parking for click and collect customers would add to that complexity and cost.

Click and collect at Ocado retail will emerge and evolve in time. It won't be at the top of the key issues for Ocado retail currently though.

Trials of automated click and collect will emerge and evolve. All about the timing. With the Ocado retail CFC network greatly expanded next year I would expect further developments then. Ocado have a stake in but don't own Myrmex, they will need to be patient for when Myrmex is ready to fully trial their technology.

Yes blekit,

That facility though is being used by Ocado Solutions partners to aid store pick click and collect I believe. It's a different model at Ocado retail given Marks and Spencers stores have only a fraction of the goods in a Ocado retail average basket.

Goods would need to be transported from the CFC to Marks and Spencer car park for a Myrmex type automated click and collect?

Can you add any more to this? Click and collect far more complicated, and probably less attractive, for Ocado retail than other overseas Ocado partners?

Chilting,

Click and collect isn't missing from Ocados strategy. Ocado group have a minority stake and a seat on the board at cutting edge click and collect automation company Myrmex

https://www.myrmex-inc.com/

Click and collect will come to Ocado retail in time. It's just a question of priorities and the allocation of Ocado retails resources. Absolute focus there is the ramp up of the CFC network and additional costs alleviating the current supply chain issues. If installing automated collection points these would need to be there all year round, not just for Xmas.

Interesting article MOD123,

Lots of positives for Ocado retail currently. Travel bans, working from home, fear of the virus all driving up sales. This pattern is playing out across the world again.

The need for grocers to have cutting edge, profitable, automated online grocery operations has never been greater..

Jtan,

The share price is dropping because a rights issue is becoming increasingly likely for IAG..

Citigroup reiterated yesterday their buy rating for Ocado and £29 price target

https://www.marketbeat.com/instant-alerts/lon-ocdo-a-buy-or-sell-right-now-2021-12-2-3/

In the 3 weeks following Autostores initiation of ITC court proceedings against Ocado in 1st Oct 2020 the Ocado share price fell around 25%.

Now this case has failed I believe there is more upside for the Ocado SP than has been priced in so far. Great time to be invested in these shares..