Only last month the boss of Tesco launched a somewhat ungentlemanly attack on its tiny online rival, deeming its future totally unviable. In fairness, he wasn’t the only one who doubted Ocado. Despite it’s fantastically efficient service and friendly staff, many in the grocery sector have pondered for years whether it would ever make any money.
But finally co-founder Jason Gissing has said he can sleep easy for the first time in eight years after revealing the business’ pre-tax profitability is just one year away. This month, it became profitable before interest, tax, depreciation and amortisation.
There is no room for sentiment in the business world, but you can’t help but feel heartened by the retail minnow’s good news. Anything associated with the John Lewis Partnership and Waitrose is something of a national treasure to many people in Britain and criticising Ocado was somewhat akin to kicking someone when they’re down.
But just as the British love their national treasures they also love the soap opera of a public spat and Gissing’s response to Leahy last month was suitably acerbic. “It’s very kind of Sir Terry with his£43 billion turnover to pick on a company with£300 million sales,” he said. “Maybe we’re getting to him.”
It’s heart-warming to see the little guys triumph sometimes.
Elsewhere, it was good news for Morrisons too, after reporting better-than-expected trading. Like-for-like sales were up 3.7 per cent in the 14 weeks to November 4 and shares closed up 22.5p at 293.5p.
Marc Bolland’s recovery plan is clearly starting to work. Measures such as new store layouts and an emphasis on fresh food are luring back the customers. It also shows what a difference advertising can make.
There was practically none last year, yet this year we’ve seen the likes of Lulu, Nick Hancock, Alan Hansen and Denise van Outen merrily pushing around the Morrisons trolleys to the cheerful tunes of Take That. Their tactic is all very “isn’t life good?” and it’s worked.
Ocado and Morrisons’ results show that, however good Tesco may be, there is plenty of room for others.
No comments yet