Ocado Group PLC on Tuesday said the chief executive of its retail joint-venture alongside Marks & Spencer Group PLC will step down from the role.
Melanie Smith will leave the business at the end of next month. She has led the joint-venture since its formation back in August 2019.
Lawrence Hene, Ocado Group’s chief product officer, will take on the role of interim CEO of the joint-venture.
Ocado Retail Chair Tim Steiner commented: ‘The last two years have been extremely challenging with a pandemic to contend with affecting the grocery market in ways that we could never have predicted. Mel has steered this business through with incredible energy, and I would like to thank her for all she has done.
‘We are pleased to confirm that Lawrence Hene will take the role of interim CEO, and I know he will bring his extensive knowledge of Ocado Retail and provide the leadership required in these turbulent market conditions. We will now commence the search for a permanent new CEO to take Ocado Retail through the next steps of our growth as a critical part of the strategy for both Ocado Group and Marks & Spencer.’
Ocado Retail is an equal joint-venture with Ocado Group and M&S. Ocado had previously partnered with John Lewis Partnership-owned Waitrose.
The grocery JV was one of the biggest winners of the pandemic, as more turned to online shopping due to Covid curbs. It has found that sort of success outside of lockdown restrictions hard to come by, however.
In May, Ocado cut sales growth guidance at the JV, as grocery buying behaviour normalises and consumer confidence weakens.
Annual growth at the JV will now be ‘in the low single digits’, the forecast lowered from a 10% climb.
Ocado shares were 6.2% higher at 801.620 pence each in London on Wednesday afternoon, after the stock fell 3.2% on Tuesday. M&S shares were up 0.8% at 144.04p.
Outside of the JV, Ocado also operates a technology unit which provides automation technology, distribution and logistics services to grocers.
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