What smart money is saying about Ocado Group

Position history

Every position in Ocado Group on record in the archive was reported in Q2 2026, across 1 fund letter, with no move described.

Fund activity · 1 position

• HoldsJupiter UK Dynamic Equity Fund

  June 2026

  “What price would you pay for 16.3% of the UK online grocery market (focused on affluent customers) and growing? It’s a question we are increasingly asking ourselves in the context of our ongoing research into Marks & Spencer. The answer, according to its invisibility in analyst notes and explicit forecasts, is seemingly not very much. Archie Norman, architect of the deal, disagrees. This is what he had to say about it at the 2025 Retail Technology show: “What do my shareholders think? They don’t think there is a lot of value in it, probably zip. What do I think? I think it’s going to be worth a lot of money.” Now consolidated in the M&S accounts, it is carrying losses at an earnings level. The best way to think about its value therefore is the loss accruing to M&S multiplied by the group multiple. Let’s call that a £300m liability. If we were being kind, we might give it the balance sheet value of £385m, but we doubt that others would. Let’s perhaps just call it worth zero. Why is this the case, we ask, when explicit M&S strategy is for ORL to become sustainable and self-funded, run as commercially as possible to maximise its economics and value? This is a scaled standalone business: revenues of £3.2bn last year, up 15%. M&S Food product sales were around one-third and grew 18%; in many fresh categories M&S accounts for more than 50% of sales. Growing M&S volumes provide wider buying synergies to M&S Food – around £60m previously stated, and growing. ORL now accounts for more than 10% of M&S Food volumes. Last year ORL generated its first operating profit since the pandemic, despite a growing view that the JV could be run far more commercially. M&S want improved performance before committing further growth capex. How could the JV financials be improved? 1. Capacity utilisation: push hard to fill existing fulfilment centres and increase throughput, for example through enhanced picks per hour. 2. Reduce funding costs: both owners provide shareholder loans at high interest rates; as profitability improves the JV should refinance away from them. What do my shareholders think? They don’t think there is a lot of value in it, probably zip. What do I think? I think it’s going to be worth a lot of money.” M&S Chair Archie Norman © 2026 Jupiter Asset Management | The Engine RoomPage 12 of 23 3. Cross-selling: huge, untapped potential. M&S has a deep, long- lived brand and national customer base; Ocado does not. What is the value in integrating “Sparks” with Ocado? 4. Renegotiate service fees: not expected yet, but the fees are expensive – a direct cost to ORL for Ocado Group’s benefit. It might take a mindset shift at Ocado Group to see the major value in a more profitable, faster growing ORL.”

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