A Brief Note On The World's Leading Online Grocery Retailer

1656 Words Dec 15th, 2014 7 Pages
Ocado, the world’s leading online grocery retailer, has been elected the best online supermarket in the UK since being founded in early 2000 by Tim Steiner, Jason Gissing and Jonathan Fairman. (Hall, 2010) With the rapid expansion, Ocado develops and operates a unique business model which only focuses on customers’ online shopping and emphasises the partnership with Waitrose. There are ranges of products offered in Ocado, including the own brand groceries from the Waitrose supermarket chain; and a range of Carrefour 's products. Ocado is aiming at improving the customers’ shopping experience and changing the way people shop for groceries. “The strategic objective of Ocado Group plc is to align the interests of customers, investors and stakeholders to deliver long-term shareholder value.” (Ocado, 2014) This report will undertake a detailed analysis employing financial ratios from an evaluation of its profitability, financial position and cash flow to formulate an overall view of the company’s financial performance.

PROFITABILITY REVIEW

Profitability ratios focus on the relationships between the various components of profit and the balance between them. It had been a rise of 0.7 per cent in the GPM (that was, from 30.5 per cent to 31.2 per cent), which meant the gross profit was higher relative to sales revenue. Although the GPM was inferior to a mark-up of 100 per cent, it also perhaps reflected an excellent performance by Ocado in 2013. 31.2p was left for each £1…
Open Document