Ocado Group Technology Division Leadership Shake Up as Founder Steps In to Lead

Tim Steiner, founder and group chief executive of Ocado Group, has assumed temporary leadership of the company’s technology business following a prolonged two-year search for a permanent division head. The FTSE 250 company’s shares tumbled 5 per cent following Wednesday’s announcement of the leadership restructure.

The move sees Steiner taking the helm as chief executive of Ocado Solutions, the division responsible for licensing the group’s robotic warehouse technology to global supermarket chains. This appointment comes after John Martin’s departure, who served 18 months in an interim capacity since September 2023, following Luke Jensen’s exit after six years of leadership.

The company, renowned for its online grocery partnership with Marks & Spencer, has initiated a formal search for a long-term successor. James Matthews, currently serving as chief executive of Ocado Technology, will transition to deputy group chief executive, supporting Steiner’s broader responsibilities during this interim period.

The organisation’s market valuation has experienced a dramatic decline from £22 billion during the pandemic to a current £2.46 billion, resulting in its removal from the FTSE 100 index. Share prices have witnessed a 14 per cent year-on-year decrease, with market concerns centring on the slowdown in robotic site deployment for grocery retail partners and a scarcity of new technology partnerships.

Ocado Solutions, widely regarded as the group’s growth engine, has encountered significant challenges, including operational pauses at Kroger in the United States, Sobeys in Canada, and a reduction in operations with Morrisons. Despite these setbacks, the division recently secured a promising partnership with Panda in Saudi Arabia.

The market responded decisively to the leadership announcement, with Ocado Group shares closing at 299p, marking a 15p (4.8 per cent) decline. This leadership transition underscores the ongoing challenges facing the technology-driven retailer as it navigates through a period of strategic realignment and market uncertainties.