Ocado has launched its first robotic warehouse in Asia as it seeks to revive its fortunes amid woes in Britain.
The company which owns the online supermarket and a technology business yesterday opened a distribution centre in Japan.
Ocado is reeling from a £500million loss in 2022 and an 80 per cent slump in its share price since its pandemic peak in 2020.
Last week, the chairman of Marks & Spencer, which owns 50 per cent of Ocado’s supermarket arm, said there was ‘work to do’ to turn it around.
Archie Norman told investors he was ‘not happy about where it is’ but added: ‘We strongly believe in the future of Ocado, we think it’s the right model for M&S online.’
Eastern promise: Ocado boss Tim Steiner, pictured in 2015 with his partner Patrycja Pyka, said grocery spending in Asia is set to outstrip every other region of the globe over the next decade
Ocado’s supermarket division – Ocado Retail – has been hit by shoppers adding fewer items to their online baskets in the face of rising living costs.
But while the UK business is struggling – analysts described the latest results as ‘truly dismal’ – Ocado continues to open high-tech warehouses around the world.
It is now working with Japanese group Aeon to distribute orders for its new grocery delivery brand Green Beans.
Having opened a warehouse in the Kanto region, the pair plan to open a second centre together in Tokyo.
The supermarket is placing its bets on growth in the Asian grocery market.
Ocado chief executive Tim Steiner said: ‘Grocery spend in Asia is set to outstrip every other region of the globe over the next decade.’
But the move did little for the shares, with the stock falling 1.8 per cent, or 10.4p, to 581.6p.
Analysts have suggested Ocado should spin off its retail business and focus on its robotic warehouses division.
Danni Hewson, head of financial analysis at AJ Bell, said: ‘Ocado appears to be at a tipping point.’
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