Published On: Thu, Feb 5th, 2015

CEO Tim Steiner’s Hard Work At Ocado Finally Pays Off

Ocado is finally profitable after 15 years in business.

tim-steiner

 

Beating the odds in a fiercely competitive supermarket sector in Great Britain, Ocado, the online grocery delivery service, made its first profit in its 15 year history. Ocado reported a 7.2 million pound profit ($11 million) which CEO Tim Steiner said would have been higher,  if the company did not need to cut prices to compete. Nevertheless, the holiday season was strong for Ocado, its partnership with Waitrose was thriving, and its new deal with Morrisons probably brought Ocado into profitability territory.

Ocado’s focus, according to Marketing, is on high-quality rather than cutting corners to keep up with the lowest priced peers in the space. It has its own software, is focused on customer service with a user friendly website and people friendly delivery staff. This might be a factor in the huge increase of Ocado shoppers from 68, 000 to 453, 000 in just one year.

Ocado has also included special offerings, such as a pet products segment, and an online beauty store. With its ability to turn a profit, Ocado is expanding, and building a new delivery center in Warwickshire. According to CityAm.com, Tim Steiner said, “Overall, we are well-equipped to continue to lead the online grocery revolution, in the UK and overseas, as increasing numbers of customers shift away from traditional forms of retailing.”

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