Waitrose to Prove an Olympic Winner?
By Laura Elliott.
Upmarket retailer Waitrose has been awarded a gold medal by Retail Week as the retailer most likely to benefit from the Olympic Games. By contrast, the chain’s one-time partner, Ocado, seems to be struggling.
Yesterday, Tim Steiner, chief executive for the group, bemoaned both the Olympics and the Diamond Jubilee following Ocado’s half-year results which revealed a £90 million loss from the chain’s market value.
Despite this, the company did manage to make a small profit, and the result was largely in line with analysists’ predictions. However, investors in the company may be worried about the group’s potential for sales growth. Although one-off events such as the Olympics cause some form of disruption to trading, it has been suggested that Ocado’s problems are more structural – and long-term.
Waitrose is now viewed by the group as a threat, due to the fact Ocado still sells a lot of its range. Whether this will impact badly on Ocado in the future, only time will tell.
Short URL: http://www.internationalsupermarketnews.com/?p=7245