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Bloomberg
Ocado Group Plc is counting on three new automated warehouses in the UK to improve its ability to meet demand for online grocery shopping that’s thriving during the pandemic.
The company’s retail revenue jumped by 35% in 2020, as the UK delivery arm that’s jointly owned with Marks & Spencer Group Plc gained popularity among Covid-wary customers favoring e-commerce over supermarkets.
Ocado has not always been able to meet demand for deliveries, however, because its automated warehouses take time and considerable investment to build. During the first lockdown in March it had to temporarily take down its website as it was deluged with orders. On Tuesday, the company said retail sales growth this year will depend on additional capacity and the length of Covid restrictions.
The shares, which gained almost 80% in 2020, fell as much as 5.2% in London.
Ocado is more bullish on prospects for its technology licensing arm, saying invoiced fees will grow about 30%
in 2021.