Ocado Group appoints technology expert Adam Warby as its next chairman
- Adam Warby is a senior advisor at KKR and CEO emeritus of Avanade
- Warby’s arrival at Ocado follows a challenging period for the FTSE 250 company
New chairman: Ocado has appointed Adam Warby to replace Rick Haythornthwaite as chairman from early December
Ocado Group has appointed Adam Warby to replace Rick Haythornthwaite as chairman from early December.
Warby will join the online supermarket’s board as a non-executive director on Friday, before taking up the role of chairman the following month.
He is already chairman of the leadership consultancy group Heidrick & Struggles, CEO emeritus of IT consultancy Avanade, and a senior advisor at private equity giant KKR.
Warby started his career in sales at IBM, then moved to consulting and management positions at Microsoft and became chairman of Swiss SoftwareOne.
His arrival at Ocado follows a challenging period for the FTSE 250 company, which has struggled to boost sales and become profitable amid a post-pandemic shift to supermarket shopping.
In its half-year results for the six months ended June 2, the company posted a pre-tax loss of £153.9 million, partly due to costs related to the rollout of technology in warehouses.
However, Ocado increased its full-year profit before dire impacts and cash flow outlook, with the latter expected to improve by £150m on an underlying basis from £100m.
The company has since raised its annual revenue guidance after a strong performance in the third quarter, when retail sales rose by more than 15 percent year-on-year to £658 million.
The Hatfield-based group believes sales of its e-commerce supermarket division, a joint venture with Marks & Spencer, will grow at a low double-digit rate.
Ocado has also signed deals to supply robotic equipment to warehouses of US retailer Kroger and to build a third customer fulfillment center for Japanese hypermarket operator AEON.
Tim Steiner, CEO of Ocado, said: ‘Our industry-leading technology is now live at 11 of our 13 partners globally, and we continue to expand the scope and reach of our technology into new markets and sectors.
“As we work with our partners to scale their online capabilities and sharpen their operations, Adam’s expertise as a global technology and consulting leader will be a valuable asset to the board and leadership team.”
Rick Haythornthwaite, 67, announced his departure from Ocado in April to devote his time to chairing the NatWest Group.
He joined Ocado in January 2021, when the company was experiencing massive sales growth, while stores in Britain were forced to temporarily close or face strict operating restrictions.
Since then Ocado shares have plummeted by more than 90 percent due to slowing expansion and cost-of-living pressures pushing consumers to purchase discount grocery items.
They were down 0.3 percent at 349.1 pence on Thursday afternoon, meaning their value has shrunk by more than half this year alone.
Haythornthwaite said: ‘It has been an enormous pleasure to have been Chairman of Ocado for the past four years and to have had the opportunity to help a visionary technology company that continues to drive change in the online grocery industry and beyond.
“I look forward to seeing this market-leading company continue to thrive under Adam’s leadership in the years to come.”
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