Annual Report for the 52 weeks ended 1 December 2013


Welcome to Ocado, the world's largest dedicated online grocery retailer. We have developed and operate a unique business model which positions us strongly as more consumers choose to shop online.

Our focus is on improving our customers' shopping experience, with the clear objectives of driving strong growth and delivering long-term shareholder value.

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Chairman's Letter

"I have assumed the role of Chairman in what has been a truly transformational year for the Group."

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Chief Executive Officer's Review

The last twelve months have been an important period of development for Ocado as we improved the shopping experience for our customers

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Financial Highlights

On time or early


On Time or EarlyView Highlights¹

Average basket size


Average BasketView Highlights¹

CFC efficiency (CFC1)


CFC EfficiencyView Highlights¹

Service delivery


Service DeliveryView Highlights¹

Gross sales (Group)


Gross Sales GroupView Highlights¹

Gross sales (Retail)


Gross Sales RetailView Highlights¹

Net assets


Net AssetsView Highlights¹

The grocery market has seen enormous change since the days of numerous small independent shops selling to their immediate local street catchment areas. In particular, the way that customers shop and the format of retail operations have changed significantly. Changing formats have reflected "channel shift" in the market.

View The opportunity: channel shift
The opportunity: channel shift

As customer behaviour shifts towards shopping for groceries online, incumbent retailers are trying to adapt their existing businesses to meet this fundamental change. We are solely focused on the online channel, and committed to providing the best customer shopping experience available, without the distraction of legacy bricks and mortar operations. Our objective has been to be a cost leader and create a virtuous cycle between growth, efficiency and investment.

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Operating Model

We invest in our infrastructure to service the growing demand for our business and continually seek to drive efficiency throughout our end-to-end operations.

Critical to our operation is the software that controls it. This software is largely developed in-house.

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Cfc interior

Technology is at the core of our business. We develop and utilise proprietary processes, systems and software throughout our business to improve efficiency and operations, and to provide market leading user interfaces and applications for our customers.

We did not set out to make supermarket shopping a little bit better. Our aim was to build a unique online shopping and fulfilment solution that would revolutionise the way people buy their groceries.

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Krakow market

Significant market opportunity – enormous global grocery market

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Largest dedicated online grocery supermarket in the world

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Unique operating model with structural advantages over traditional retail models

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Considerable operational leverage with margin potential

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Uniquely positioned to benefit from the next “channel shift” – incumbents face considerable challenges

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Proprietary intellectual property platform developed over 13 years of investment has created significant barriers to entry

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Operating model supports a virtuous cycle of growth, technology led investment and improved returns

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Commercialising intellectual property offers significant value creation opportunities in the UK and internationally

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Superior customer offer in online grocery retailing delivering the highest industry service levels, wider choice and competitive prices for customers

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Proven management team driving continued growth and value creation

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