Ocado under pressure as Amazon fresh launch erodes investor confidence
Shares in Ocado have fallen by another 8 per cent as investors fret about the impact of Amazon Fresh. City sceptics of the online grocery distributor’s business model have long warned that Tesco or Amazon would knock it out of the game. Last week Amazon launched its assault on the market, offering same-day deliveries of 130,000 fresh and frozen food items to its Prime members.
Ocado shares have been falling ever since and took their biggest hit yesterday, falling 19¾p to 233¼p. The shares hit a peak of 600p in February 2014, but generally have slid since then.
Broker Bernstein said: “the entry of Amazon Fresh into the UK doesn’t come out of the blue but it will further worry investors about the fundamentals and prospects of the UK food retail market”