Ocado boss says online grocery shopping will continue growth; bats against tax   

Online supermarket Ocado expects the online share of the overall grocery market to continue growing, even when the COVID-19 pandemic recedes, its boss said on Tuesday.

According to market researcher Nielsen the online share of British grocery sales hit a record 16 per cent in January, up from 8 per cent in the same month last year, driven by increased demand during the country’s third lockdown.

“We suspect it’s likely to continue growing,” Ocado chief executive Tim Steiner told reporters.

“Historically, we’ve always seen when customers have done this three to five times they tend to stick with it, so it’s likely that it will just keep growing,” he said.

Steiner came down against the proposal of an online sales tax which the government said it is considering that as part of its review of business rates.

“We already have sales tax in the UK, it’s called VAT. It’s applied equally to whoever sells the product based on the products,” Steiner said.

“I don’t think it’s appropriate for anyone to put a sales tax on a retailer because they operate from a different type of premises or they’re a more efficient operator,” he said.

Britain’s retail sector has for years complained that the business rates system, charged on most commercial properties, is archaic and hands an unfair cost advantage to online retailers.