Ocado Succession Search Intensifies as Shares Slide

Ocado’s revenue comes from two main sources. Ocado Retail, a joint venture with Marks & Spencer, runs the U.K. delivery business. It posted a sales rise in the most recent quarter, helped by better delivery slots and a wider product range, margins remain thin. The Solutions division licenses automated warehouse technology to grocers including Kroger in the U.S. and Morrisons in the U.K. That unit has yet to reach sustained profitability.

Kroger has been a particular sore spot. The 2018 deal called for a network of automated fulfillment centers across the U.S. Several are now operational, the rollout slowed sharply after Kroger paused plans for additional sites while it reassesses its online strategy. The pause directly hits Ocado Solutions’ revenue pipeline, and the partnership no longer looks like the transformational growth engine Steiner promised.

A new CEO would inherit a complicated structure. The business combines physical grocery retail with software licensing, a mix that narrows the candidate pool. Any replacement would also need to manage the relationship with M&S, which has its own strategic priorities for the joint venture.

The company’s annual general meeting is scheduled for September. Until then, Steiner remains in charge, and the board continues its search without a named deadline.