The problem with Ocado’s business model, say the sceptics, is that it’s too damned inflexible. They have a point.
In the two pandemic-affected years, Ocado Retail – the UK business that these days is a 50/50 joint venture with Marks & Spencer – achieved top-line earnings (pre-interest, tax and amortisation) of £148m and then £150m. The numbers would have even better if only more warehouses had been available to meet booming online demand during the long months of lockdown. And this year? Tuesday’s update was the second downwards revision to forecasts since March and said mere break-even was on the cards. From £150m to zero in 12 months.
