Ocado Group, the online grocery technology provider, is undergoing a strategic overhaul aimed at boosting its struggling stock market valuation. According to Sky News, the London-listed operator of automated retail goods warehouses will announce the appointment of its first chief revenue officer, Nick de la Vega, on Wednesday. De la Vega, who previously served as the global head of sales at Atos, a digital transformation specialist, will be tasked with driving global sales across food and non-grocery retailers.
Reporting to Tim Steiner, Ocado’s co-founder and chief executive, de la Vega’s responsibilities will include forging new partnerships, maintaining existing ones, and leading the company’s global technology sales efforts in emerging sectors such as pharmaceuticals and apparel. In recent years, Ocado has expanded into these new areas, alongside its core grocery offerings. The company disclosed in July that its exclusivity agreements with several customers would expire in most markets where its technology is operational, although specific partners were not identified.
Ocado serves multiple customers in the UK, including Marks & Spencer through Ocado Retail and Morrisons. Internationally, its grocery partners include Aeon in Japan, Alcampo in Spain, Coles in Australia, and Lotte in South Korea. Non-grocery partners include McKesson in Canada.
The company’s stock took a hit recently when Kroger, its primary US-based retail partner, announced a reevaluation of future automated warehouse investments. This news resulted in a significant drop in Ocado’s market value, with approximately £500m wiped off in a single day. As of Tuesday’s close, Ocado Group’s shares were priced at 234.4p, giving the company a market capitalization just under £2bn. Over the past year, the stock has declined by nearly 40%.
Ocado Group has chosen not to provide further comments on these developments.
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