Ocado - comment
The CFC model is not dead, but is evolving. ODO Systems is a competitor to Ocado, and we agree with the sentiment that Capex control will constrain the growth of larger warehouses. As we have maintained, in-store order fulfilment is the least efficient way of satisfying online demand. More but smaller CFCs allied with the larger hubs is likely to be the future, which was part of Ocado’s most recent investor presentation.