The world is changing and Ocado is a great example of that. They are a completely online supermarket which is trying to compete with some of the most trusted and respected brands in the United Kingdom. They have already done well to compete with some of the giants, but in recent times they have struggled to make progress.
Trust in technology
Its investors have been very impatient as it gave promises that it would be going in the right direction. They put a huge investment in their technology in 2012 and would be hoping that it would soon see the returns.
That didn’t happen, however, not immediately. Their business partnerships weren’t as strong as they were expecting and their share price remained stagnant for a long period of time. That all changed recently though as they announced deals for even more warehouses for the distribution of its goods.
It announced a partnership with the American retail giant Kroger which will share that technology so that it will be used on a much wider scale. The whole UK retail industry is under threat from Amazon, but Ocado has shown that they can compete with their technology and stop them from dominating the market as they hope to do.
Better for the customer
That competition will hopefully lead to more choice for a consumer who seems to be more and more enticed by Amazon’s speed, efficiency and pricing. Ocado was started with funding from Waitrose and signed a huge deal in 2013 with Morrisons to operate their online goods.
After the Kroger deal, it’ll be interesting to see if there are any other companies who will be looking to partner with a company whose investment in their technology has paid off massively. With so many companies looking over their shoulder at Amazon, they might see Ocado as a lifeline.
Grocery industry under threat?
We have seen in the clothing and toy industry many companies that have struggled to cope with the online boom. As customers are trusting online shopping more by the day, the same struggles might now be seen in the grocery world.
The likes of Tesco have their own warehouses of course, but their technology can’t compete. They will either have to invest in it or jump into bed with Ocado like Kroger did. Ocado is quietly becoming one of the biggest players in the grocery industry, both in the UK and abroad.