Ocado is intensifying its same-day delivery service amidst growing demand and strategic pressure.
- The company plans to increase delivery slots, targeting larger orders than last-minute purchases.
- Operational shifts are influenced by M&S, which seeks a turnaround in the delivery model’s profitability.
- Hannah Gibson sees potential improvements anchoring Ocado’s strategic reset.
- Concerns about the impact on local convenience stores arise amidst these expansions.
Ocado is taking significant steps to expand its same-day delivery service, amidst increasing pressures from stakeholders like M&S. Currently offering a limited number of slots weekly, Ocado is poised to amplify their availability, appealing to a broader UK market.
The strategy involves encouraging consumers to book larger deliveries rather than relying on quick last-minute orders. This shift parallels the challenges faced by companies like Deliveroo, which have struggled with profitability in rapid delivery.
M&S insiders are meticulously assessing Ocado’s strategic course, cautious of the economic viability that rapid delivery necessitates. This move is not merely about market share but discovering a sustainable operational model.
Hannah Gibson, since taking leadership of Ocado Retail, identifies same-day delivery as a key area for potential growth, aiming to revamp business operations. Her efforts align with internal strategies to mitigate pressure from partners demanding tangible progress.
Retail experts, like Andy Adcock, express concerns that Ocado’s advancements might circumvent smaller local shops, although he posits that M&S food halls wouldn’t be adversely affected due to their customer habits.
Ocado’s strategic emphasis on expanding same-day delivery reflects a crucial evolution in its operational focus and stakeholder demands.
