Ocado’s share price has skyrocketed since the start of the UK’s lockdown seeing growth in value well above the likes of Amazon.
Since March 1, Ocado’s share price has skyrocketed more than 87 per cent, peaking at 2100p per share on March 13.
Overall, this year Ocado’s share price has grown more than 50 per cent and has increased sevenfold since 2017.
In comparison, Amazon’s share price has risen 2.5 per cent in the same time period.
This comes after Ocado announced that it had seen its retail revenues grow 40.4 per cent in its second quarter as the coronavirus pandemic saw it deliver “significantly more groceries to households than ever before”.
According to Hargreaves Lansdown’s Sophie Lund-Yates: “Demand is outstripping supply for online groceries and as a digital-only supermarket, Ocado is in prime position to benefit. We expect a longer-term increase in online demand.
“The focus should be on the solutions business, where grocers are charged for using Ocado’s robotic systems.”
In April Ocado announced it had opened its first automated fulfilment centre in North America marking the latest milestone in its ongoing transition away from being a retailer itself, towards becoming a technology provider for other brands.
Despite its seemingly runaway success financially during the pandemic, Ocado has struggled to maintain its reputation with its customers as its delivery capacity is pushed to the limit.
Ocado stopped accepting new customers before the lockdown officially started on March 23, and has since left hundreds of existing customers, many of whom pay extra for free weekly deliveries with its Smart Pass, unable to access its platform.
Its unclear what impact this will have on Ocado’s favourability with once loyal shoppers after lockdown, and Ocado has chosen to suspend its guidance the full year “until we can accurately forecast likely outcomes”, citing the continually changing situation regarding lockdown.