WEBVTT

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Welcome to you both. Gregor, to you first.

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Talk to me, if you would,
about the online grocery market today.

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What are the trends?

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What should we be focusing on?

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Yeah, it's,
it's an exciting time for online grocery.

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We're, so to say, beyond the what
I would call the COVID hangover.

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There was a surge obviously in demand
during COVID and in the two years after

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COVID no one really knew where it's going to be.

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And if I'm comparing last year to to this
year, last year everyone was,

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seems to grow again.

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But we're not yet sure. This year is,
there is no doubt in all developed

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markets. And we see the US, UK,
and all the developed markets,

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online grocery is actually back and the
fastest-growing consumer channel in

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grocery and and we see that everywhere.

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In today's cost-conscious, complex world,
how do you drive growth?

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What's the secret, Sarah?

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So I think the big importance is to be
very purposeful and choiceful because

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given, you know,
the cost and the big complexity that it

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drives, you cannot be everywhere.

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You cannot excel at everything.

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So understanding what matters to your
consumer, knowing the purchasing pathways,

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like where do I find them?

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On which online channels do I find them?

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How do they take decisions and then
basically take the choice and understand

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how to be there in a matter that is
relevant to them,

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that's going to make all of the difference.

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How can businesses build resilience into
their supply chains and sustainability as well?

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Yeah, there's actually two aspects.

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So still in online grocery,
we are offer constrained,

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not demand constrained.
The customer wants more online grocery

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and is suffering from insufficient offer still,

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because supply chain is the big challenge
both for the cost and the sustainability

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side of things.

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Luckily, they are intertwined in our business and

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we're very proud at Ocado because we have
a very short,

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very fit-for-purpose supply chain model
and technology with high robotics where

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at the end we can do food,
food waste down to about 0.

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4% of the P and L.

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As comparison,
if you're an offline grocer and you

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managed to do between 2 to 3%,
you're doing a good job.

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0.4 is absolutely leading.
And in addition,

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the biggest food waste happens at home in
your fridge, after expiration.

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As you know that,
we know that all when we are going to our

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to our fridge.
With this super-short supply chain and

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this high degree of automation,
we're massively extending the shelf life

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in the fridge of our consumers.

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And this is, this is the biggest asset both for the

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top line as well costs and sustainability.

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So what do you think?

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How can you build resilience and
sustainability into supply chains?

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I mean, just adding on that I think avoid

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rigidity is one of the answers that I
would give.

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So, you know,
build some flexibility in your supply chain.

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Don't focus it all on, you know,
one location and one solution.

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And think about scenario.

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So if something happens in the world,
and there's a lot happening right now in

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the world, you know,
you have a direct go-to option that you

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can fall back on and you don't need to
basically right in then and there start

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from scratch to think about what to do next.

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I just want to ask you,
what will this space look like in the

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next, I don't know, five, ten years?

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You mentioned the robotics, technology.

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It's an exciting space.

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Loads can happen.

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Yeah, technology plays a big role and it's in

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the heart of of what Ocado does.

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Nevertheless, I think the most exciting thing will

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happen on the consumer side. As you said,
right, can they,

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they will use different channel,
they move more and more from offline to online.

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They're shopping across both.

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That will be exciting.

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But for example,
what we're doing on the technology side,

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where for example,
with our newest fulfillment robotics,

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the 600 Series Bot is probably the most
complex 3D-printed robot in the industry,

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probably across the industries.
Saves energy, is much lighter,

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spare parts don't need to be stored.

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So things like that.

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But also our on-grid robotic pick.

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So when you are getting shopping from
Ocado, for example, in UK, meanwhile,

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more than 30 to 40% is robotically picked.

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So no human would touch it between the
farm and your refrigerator.

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And that's obviously where technology
excites because it creates customer value,

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quality, freshness.

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That's normally what excites me when
technology transforms businesses.

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Brilliant.

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Thank you both so much.