It's a vast market, and one where the landscape is changing at dizzying speed. Growth in traditional “big box” stores is static: all growth is in online, food discounters and convenience stores, with online having the biggest potential of all to disrupt the current retail marketplace.

The marketplace

Total UK Grocery sales 2014-2015
178 billion1

Online accounts for 12% of retail sales
Online sales are growing at 12% per year
Grocery accounts for 12% of online sales2

80%
UK households have broadband3

74%
UK residents now own a smartphone

54%
smartphone owners have made a purchase on it4

The grocery market has evolved out of recognition over the last 60 years, from small, local retailers to sprawling, out-of-town hypermarkets. Each “channel shift” in the market has taken over 50% of customers to the new, dominant format – and it’s happening again now.

The relentless growth of online shopping is powered by improved technology, faster broadband and better mobile devices – and a significant increase in uptake of all three. Traditional supermarkets face a difficult dilemma: invest in online, and cannibalise themselves; or don’t invest, and risk losing customers and market share.

Ocado is different. As the UK’s only ‘pure play’ online grocery operator, and the world’s largest dedicated online grocery supermarket, our business was built for this channel shift – to benefit from, and to lead the online revolution.

1IGD data for the year to April 2015
2Office for National Statistics – January 2014
3Organisation for Economic Co-operation and Development – January 2014
4Ofcom – October 2013