Sep 30, 2020
Ocado steals Tesco crown as UK’s most valuable food retailer
Ocado has overtaken Tesco as the most valuable food retailer on the UK stock market after its share price soared during the pandemic. Based on Tuesday's closing prices, the online group that former Tesco chief executive, Terry Leahy, reportedly once described as a "Charity" because of its cumulative losses, is worth £21.7bn against Tesco's £21.1bn. Tesco is still by far the largest supermarket in the UK, dwarfing its online rival in terms of sales, profits and cash flow. An agreement with Kroger in May 2018, the largest food retailer in the US, was a notable turning point; Ocado's shares have risen fivefold since it was announced. Many investors regard Ocado as a technology stock rather than a retailer. This is certainly the view of Tesco, which removed Ocado from a comparator group of companies used to determine executive bonuses because its share price growth was "Correlated to the sales of its technology platform as opposed to its food business".
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