Ocado's Steiner Defends Future Role Amid Succession Speculation

Succession Plans and Leadership Transition
The co-founder and current chief executive of Ocado, Tim Steiner, has announced his plans to step down as CEO in two years. In a trading statement, the company revealed that pre-tax profits had slumped to £17 million for the six months ending May 31, marking a significant drop from the previous year's figure. Shares in Ocado tumbled nearly 15%, reaching their lowest point in over a decade.
Steiner’s Vision for the Future
Steiner reassures that he has no intention of acting as a 'puppet master' exerting control over staff, insisting his role will be to support and provide strategic guidance. He stated: “I have no intention of being a puppet master and controlling everybody. I will be there to support them and give clients ongoing certainty.”
Boardroom Tensions and Future Outlook
The company has faced internal tensions, with reports suggesting that the board had begun searching for a new CEO without consulting Steiner. Adam Warby, the chair of the board since 2024, has remained silent on these matters. Despite the challenges, Steiner remains committed to leading Ocado through its next phase and insists that the business is “on a good path.”
Future Growth Prospects
Ocado anticipates signing new clients in the United States within the next six to 12 months. Existing clients are experiencing strong growth, and the company expects to open its robot-run distribution centres for clients in South Korea and Japan this year. Additionally, Ocado’s retail joint venture with Marks & Spencer is growing rapidly, with sales up 15% to £1.76 billion over the half-year period.
Analyst Reactions
Adam Vettese from etoro highlighted that while the company remains loss-making and international technology adoption has lagged, the negative reaction in shares underscores ongoing concerns about execution and achieving cashflow positivity.

Source: The Guardian