{"id":18421,"date":"2021-07-07T09:14:27","date_gmt":"2021-07-07T09:14:27","guid":{"rendered":"https:\/\/www.grocerygazette.co.uk\/?p=18421"},"modified":"2021-07-29T09:20:12","modified_gmt":"2021-07-29T09:20:12","slug":"startups-small-ocado","status":"publish","type":"post","link":"https:\/\/www.grocerygazette.co.uk\/2021\/07\/07\/startups-small-ocado\/","title":{"rendered":"Grocery startups to stay small, Ocado boss predicts"},"content":{"rendered":"<p><!-- VideographyWP Plugin Message: Automatic video embedding prevented by plugin options. --><br \/>\n<span style=\"font-weight: 400;\">Rapid delivery firms will fail to take over the grocery market and inevitably lose out to bigger retailers, Ocado chief executive Tim Steiner has said.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He made the comments as the online supermarket\u2019s six-month growth halved.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Covid-19 pandemic has seen startups like Weezy and Getir, which deliver groceries in around 15 minutes, attract a wave of investment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, Steiner claimed that traditional online shopping &#8211; where customers book delivery slots in advance &#8211; would continue to dominate.<\/span><\/p>\n<p style=\"text-align: center;\"><strong>READ MORE<\/strong>:\u00a0<a href=\"https:\/\/www.grocerygazette.co.uk\/2021\/06\/02\/ocado-aggressive-markets\/\">Ocado mulls \u201caggressive\u201d move into overseas markets<\/a><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe channel shift is going to move to the big warehouses,\u201d he said.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThey are the format that offers customers the lowest price and the largest range, and the freshest food, and customers have always migrated to those factors.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He added that the startups posed more of a danger to smaller stores, which also depend on \u201ctop-up\u201d shopping.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some experts believe Big 4 convenience stores face an existential threat from on-demand grocery firms.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ocado revealed yesterday that its retail revenue in the six months to May 30 grew by <a href=\"https:\/\/www.grocerygazette.co.uk\/2021\/07\/06\/ocado-23m-loss\/\">19.8 per cent<\/a>, well below the 39.7 per cent recorded by February.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It blamed the drop on customers buying less and eating out more as lockdown restrictions lifted.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">IGD predicts that groceries delivered in under an hour, known as \u201cquick commerce\u201d, will drive online shopping growth and reach a value of \u00a33.3 billion in the UK.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The analysis accounts for startups like Weezy and third-party providers like Deliveroo, but also supermarket services like Ocado Zoom.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rapid delivery firms will fail to take over the grocery market and inevitably lose out to bigger retailers, Ocado chief executive Tim Steiner has said.<\/p>\n","protected":false},"author":62,"featured_media":18422,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[154,3928,3931],"tags":[4494,1078,198,4674,4492,4673,3622],"_links":{"self":[{"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/posts\/18421"}],"collection":[{"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/comments?post=18421"}],"version-history":[{"count":2,"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/posts\/18421\/revisions"}],"predecessor-version":[{"id":18424,"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/posts\/18421\/revisions\/18424"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/media\/18422"}],"wp:attachment":[{"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/media?parent=18421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/categories?post=18421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.grocerygazette.co.uk\/wp-json\/wp\/v2\/tags?post=18421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}