CEO Revitalises Ocado Retail Via Strategy and Innovation
Ocado Retail’s CEO discusses how the company has expanded so rapidly in the global food retail industry.
The company, which operates as an online-only supermarket as the joint venture between Ocado Group and Marks & Spencer, is leveraging its digital-first approach to reshape the grocery retail landscape, which marks a significant shift from previous reports of discord within the organisation.
Ocado Group is a British online grocery retailer that operates a technology-driven platform for e-commerce and logistics.
Marks & Spencer is a UK-based retailer known for its food, clothing and home goods, holding a 50% stake in Ocado's retail business.
In an interview with The Grocer, Amit Chitnis, who joined as CEO in December, says that Ocado Retail has also "rediscovered its mojo".
Chitnis discusses his role in transforming Ocado Retail’s operations and how he plans to maintain the company’s success.
Ocado Retail: transforming supplier relations
Chitnis has focused on transforming Ocado Retail's operations through strategic innovation, technology integration and customer-focused solutions to drive growth and efficiency in the competitive online grocery market.
Chitnis worked at Tesco for a decade leading group strategy. Eventually, he applied the “strategy mindset” to his own career, asking himself: “What would retail look like by the time I’m close to retiring? And I wasn’t convinced I was quite at the cutting edge of what the future looks like.”
Upon joining Ocado Retail, Chitnis implemented a commercial team plan focused on "clarity, confidence and culture".
This initiative has reportedly led to more engaged and energised buying teams.
Chitnis says that there have been skill sharing sessions among the buying team, who as a result, now feel “more engaged and energised” with a “buzz” about the place again.
The company's digital model also allows for rapid product launches and promotions.
Chitnis explains: "If you want to range a new product, you don't have to wait for a range review window. If you want to switch on a promotion or change your price, you don't have to worry about somebody having to change labels in 500 stores."
This agility was demonstrated when Ocado responded to a strawberry crop flush during recent hot weather.
Within 48 hours, the company began selling 1kg punnets at US$5.45, a process Chitnis claims is "not replicable elsewhere" in the supermarket sector.
Ocado Retial’s data-driven decision making
Ocado Retail's online-only model provides extensive customer data, including purchase history, preferences and browsing behaviour.
Chitnis likens this to having "eyeball tracking technology and thousands of cameras" in a physical store.
The company is using this data to collaborate with brands on product development, marketing and pricing strategies.
Chitnis states: "Don't stop at the insight, turn that into action with the suppliers."
Ocado is also utilising search data to identify and develop new product subcategories, yet Chitnis emphasises that the company's role extends beyond listing products: "Our responsibility doesn't end at finding something or listing it. Rather, how do we make it successful?"
This data-driven approach appears to be yielding results.
According to recent figures from Kantar, the global data, insights and consulting company, Ocado Retail has been the UK's fastest-growing supermarket for six consecutive months.
Over these six months, the company reports an 8.1% increase in active customers.
Chitnis concludes by highlighting the company's unique position in the evolving retail landscape: "That tiny bit of difference in mindset is what really sets us apart."
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