Ocado - comment

The decision of Ocado Retail to announce that its Chief Executive was stepping down a couple of days before its 22H1 numbers is damning. The timing of this announcement strongly points to guidance being cut, and Melanie Smith is paying the price. Ocado has already cut its guidance twice this year (in March and May) with promises of a recovery in 2H. Melanie Smith’s background is in strategy and marketing; she joined the JV from that role at M&S. The current environment needs someone to count the pennies and keep an eye on costs whilst the inflation surge works its way through the system. Our view on the future for Ocado Retail as a business within Ocado Group is not changed by the current headwinds, but it may offer a cheaper entry point into the Ocado Group SSNs once the results are out on 21 July.