It may account for less than 2% of the groceries sold in the UK compared to Tesco’s near 27% share of the nation’s food shopping, but the stock market value of 20-year-old Ocado is now greater than that of the 100-year-old supermarket giant – a change that could reflect the future of the weekly shop.
A sharp increase in the speed of the shift to online shopping during the coronavirus pandemic has pushed up Ocado’s share price by 155% since March. As a result it is now valued at £21bn, compared to Tesco’s £20.9bn, even though Tesco delivers far more food to Britain’s doorsteps.
Before the coronavirus crisis, just 7% of grocery sales were online, but lockdown has changed habits fast to raise that to 12.5%.
Ocado delivered a bumper 52% rise