The Ocado founder Tim Steiner’s long-held ambition to transform his business into the “Tesla of grocery” has received a further blow. In a note, analysts at HSBC highlighted the fact that the robot warehouse business might not be as high growth as hoped, forecasting slower uptake in what it said was already a “highly competitive” market with “many established participants”.
In particular, the analyst highlighted further problems with the company’s partnership with the US grocery giant Kroger, pointing to the fact it had announced the closure of three facilities, two in Texas and one in Florida, which failed to meet targets.
Ultimately, the analyst said that orders from Kroger, if anything, appear to be slowing down, underscoring the risk of overcapacity in the broader market,
