Ocado is the only dedicated online supermarket in the UK and the largest dedicated online supermarket by turnover in the world. Ocado:
- provides a market leading customer offering;
- offers delivery of grocery products to customers centrally picked from a single, state-of-the-art, highly automated warehouse (the customer fulfilment centre or ‘‘CFC’’);
- sells more than 21,000 different products, the vast majority of which are sourced through Waitrose, a leading high quality UK supermarket. Approximately 4,300 of the products sold by Ocado are Waitrose-branded products. Ocado’s product range includes a small but expanding range of Ocado branded products;
- has generated significant year-on-year growth since it started trading. Ocado’s gross sales have grown at a CAGR of 22 per cent between FYE 2007 and FYE 2010;
- has achieved positive and growing EBITDA since FY08, and we believe that the Company has a greater EBITDA margin potential than its store-based competitors; and
- is well placed to benefit from the growing demand for ordering groceries online.
Ocado intends to continue with the areas of strategic focus that have delivered strong revenue growth and improving EBITDA margins to date, and investigate additional adjacent growth opportunities by:
- Improving the customer offering continually through maintaining and improving the customer experience; increasing its core product range; and continuing to offer value to customers.
- Improving cost efficiency through continued innovation to maximise leverage without compromising Ocado’s customer offering or value proposition.
- Expanding CFC capacity (including building the second CFC) and the Spoke network.
- Exploring further growth opportunities by, where appropriate, extending the product range further into non-grocery products and exploring other opportunities including the possibility of replicating the business model overseas.