Blog: Is Ocado a retailer or a technology provider?

Ocado chief Tim Steiner seemed pretty pleased with himself today. While the online grocer has slipped into the red again in its half year results, sales are up and he is confident for the future.

That future certainly looks brighter post the Morrisons deal. The share price has been rising since Sir Stuart Rose was appointed chairman and after the Morrisons deal was announced, the City got very interested.

While Steiner is adamant that Ocado is still very much focused on being a retailer - and is busy investing in non-food lines as well as food - the future that many are seeing is as a technology provider.

Steiner and his team are in talks with other retailers about similar deals to that of Morrisons, and while the etailer has had visits from international retailers in the past - Carrefour was one that was rumoured to have taken a trip to Hatfield - they are apparently more interested post-Morrisons.

The Morrisons deal is a great coup for Ocado and means the etailer can pay down debt and re-invest in the business.

Steiner pointed out that analysts are predicting the business will turn a full-year pre-tax profit in 2014. He insisted it would have been profitable without the Morrisons deal, but that now it will be “significantly” more profitable.

Many question the etailer’s model as a retail business, but if Steiner can pull off more deals similar to Morrisons, he could be having the last laugh.