Ocado could be demoted from the FTSE 100 index as its share price has seen a decline.
The retailer’s stock market value has more than halved in the past year and is now expected to fall into the FTSE 250, FTSE Russell data shows.
While Ocado’s share price skyrocketed during lockdown in September 2020 hitting a record 2,895p, this has since fallen as consumers returned to physical supermarket stores.
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As a result, Ocado saw a £501 million profit loss last year and topped the Financial Conduct Authority’s list of ‘most-shorted’ stocks in London.
The group’s retail business also suffered a £4m annual underlying loss for the year.
Last month, the online-only supermarket revealed that it was planning to shut its oldest distribution centre, shifting towards robotic warehouses in a move that will affect around 2,300 workers.
However the firm has seen weaker demand for this technology than expected and has since seen stock fall 85%, according to reporting by This is Money.
This also comes as nearly a third of Ocado shareholders voted against CEO, Tim Steiner’s £2 million pay packet.
The vote, which took place at its annual general meeting earlier this month, saw 30.14% of investors refusing the remuneration package.