MyWardrobe.com is restructuring its twin head office operations to save costs.
The retailer said it anticipated departures as it shifts all its teams other than buying and merchandising from Camden, London, to its East Midlands operations centre based in Nottingham.
The firm is understood to have raised up to £3 million of new funds earlier this year, about the same time as principle founder Sarah Curran left the business.
About half the staff are currently based at its London office, Retail Week said.
Andrew Curran, co-founder of the business, told the magazine: 'Wherever possible, we plan to relocate London staff to positions within the Nottingham office. Inevitably some will choose not to move to Nottingham and we will therefore be recruiting new people to rebuild the team as required.'
He said MyWardrobe.com would be 'a far more agile, responsive operation' and would also save costs.
In July we reported that founder Sarah Curran had left the business. A month previously the firm's instrumental PR director Lauren Stevenson left for a job at Harrods.
Harrods Direct executive David Worby was drafted in last year to overhaul the business. It has axed around 30 brands for this season to concentrate on new designers.
Friday, 4 October 2013
Amazon Adding UK Spokes To Improve Delivery Speeds
Amazon plans to add several UK delivery spokes in the UK next year as it seeks to improve the speed and capacity of its deliveries.
The company will add four sites in the North West, South West, Midlands and Yorkshire that will act as local hubs and provide 'more capacity and flexibility'. The development raises the prospect that Amazon will use the hubs to introduce additional levels of service for customers which could mean more specific delivery times and an ever more rapid service.
Amazon launched Amazon Logistics this year which has already seen it open a number of small delivery stations - each about 50,000 square feet - including Birmingham, Oxford, Milton Keynes and several in London.
The new sites will employ about 75 people in addition to the 170 created at existing local hubs. Amazon says the system is also creating an extra 1,000 indirect positions with local logistics and delivery partners.
The local hubs are separate from the eight larger fulfilment centres operated by Amazon in the UK which include Doncaster, Dunfermline near Edinburgh, Gourock in Inverclyde, Hemel Hempstead in Hertfordshire, Marston Gate near Milton Keynes, Peterborough, Rugeley in Staffordshire and Swansea.
The company will add four sites in the North West, South West, Midlands and Yorkshire that will act as local hubs and provide 'more capacity and flexibility'. The development raises the prospect that Amazon will use the hubs to introduce additional levels of service for customers which could mean more specific delivery times and an ever more rapid service.
Amazon launched Amazon Logistics this year which has already seen it open a number of small delivery stations - each about 50,000 square feet - including Birmingham, Oxford, Milton Keynes and several in London.
The new sites will employ about 75 people in addition to the 170 created at existing local hubs. Amazon says the system is also creating an extra 1,000 indirect positions with local logistics and delivery partners.
The local hubs are separate from the eight larger fulfilment centres operated by Amazon in the UK which include Doncaster, Dunfermline near Edinburgh, Gourock in Inverclyde, Hemel Hempstead in Hertfordshire, Marston Gate near Milton Keynes, Peterborough, Rugeley in Staffordshire and Swansea.
UK Web Traders Back In The Firing Line As US Sales Tax Proposals Redrafted
A growing number of UK e-commerce traders selling to the US could be forced to collect sales taxes for the US government after congressmen redrafted proposals for new legislation to include small businesses.
The Marketplace Fairness Act passed through the Senate in May and is now heading for the House of Representatives. The act will sharpen existing tax laws by placing the onus for sales tax collection on sellers.
We have looked into the implications for UK internet retailers selling to US shoppers back in April and May.
The new bill initially included the possibility of an exemption for small firms - those selling less than $1 million either in or into the country. But new proposals put forward by two congressmen have suggested the exemption should be scrapped and replaced instead by a simpler system that would make it easier for firms to collect taxes for sales to the 9,600 state and local tax jurisdictions.
The 'basic principles' of the online, or remote, sales tax would include that: 'Governments should not stifle businesses by shifting onerous compliance requirements onto them; laws should be so simple and compliance so inexpensive and reliable as to render a small business exemption unnecessary,' according to an outline of proposals laid down by chairman Bob Goodlatte and chairman Spencer Bacchus.
Anti-tax lobbyists such as craft marketplace Etsy and online auction eBay had originally called for an exemption for small businesses - with some, including Etsy, saying the threshold should be annual sales of $10 million below which businesses would not be obliged to collect the tax.
But in an emailed statement to The Washington Post, eBay appeared to have undertaken a volte-face, saying it was 'very encouraged that the remote sales tax principles released today by Chairman Goodlatte address concerns that we have raised on behalf of our small business community.'
The Marketplace Fairness Act passed through the Senate in May and is now heading for the House of Representatives. The act will sharpen existing tax laws by placing the onus for sales tax collection on sellers.
We have looked into the implications for UK internet retailers selling to US shoppers back in April and May.
The new bill initially included the possibility of an exemption for small firms - those selling less than $1 million either in or into the country. But new proposals put forward by two congressmen have suggested the exemption should be scrapped and replaced instead by a simpler system that would make it easier for firms to collect taxes for sales to the 9,600 state and local tax jurisdictions.
The 'basic principles' of the online, or remote, sales tax would include that: 'Governments should not stifle businesses by shifting onerous compliance requirements onto them; laws should be so simple and compliance so inexpensive and reliable as to render a small business exemption unnecessary,' according to an outline of proposals laid down by chairman Bob Goodlatte and chairman Spencer Bacchus.
Anti-tax lobbyists such as craft marketplace Etsy and online auction eBay had originally called for an exemption for small businesses - with some, including Etsy, saying the threshold should be annual sales of $10 million below which businesses would not be obliged to collect the tax.
But in an emailed statement to The Washington Post, eBay appeared to have undertaken a volte-face, saying it was 'very encouraged that the remote sales tax principles released today by Chairman Goodlatte address concerns that we have raised on behalf of our small business community.'
Thursday, 3 October 2013
Ted Baker To Launch International Web Platform As Sales Rise 52%
Fashion brand Ted Baker said it is preparing to launch a new e-commerce platform to help grow international markets after web sales rose 51.6 per cent.
The firm said the new system will begin operating by the end of this financial year and will provide 'local content' to European customers.
E-commerce sales in the 28 weeks to August 10 increased to £9.4 million helping increase total group revenue by 30.9 per cent to £155.2 million in the period. Profit before tax increased 49.7 per cent to £11.6 million.
The company said its existing e-commerce business is based in the UK primarily serving the UK and Europe while it has a separate site dedicated to the Americas. It also has an e-commerce arrangement with some if its concession partners, such as House of Fraser.
The firm said the new system will begin operating by the end of this financial year and will provide 'local content' to European customers.
E-commerce sales in the 28 weeks to August 10 increased to £9.4 million helping increase total group revenue by 30.9 per cent to £155.2 million in the period. Profit before tax increased 49.7 per cent to £11.6 million.
The company said its existing e-commerce business is based in the UK primarily serving the UK and Europe while it has a separate site dedicated to the Americas. It also has an e-commerce arrangement with some if its concession partners, such as House of Fraser.
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| Ted Baker: barking up the right tree |
Sainsbury's Becomes Second Grocer To Reach £1 billion Online Food Deliveries.... But Tesco Increases Its Lead
The battle for the online grocery customer heated up this week after Sainsbury's said it had reached £1 billion in sales in the past year.
Reaching the target means that Sainsbury's, which overtook Asda by market share in the food delivery business last year, has become only the second grocer to do so.
Sainsbury's revealed the milestone as it announced that online grocery sales rose 15 per cent in the 16 weeks to September 28, according to a statement released to the City.
But it appears to be falling behind its larger rival. Online food sales at Tesco.com increased by nearly 13 per cent in the 26 weeks to August 24, which means, due to the relative size of its delivery business compared to rivals, it has increased it market share by almost three times Sainsbury's and Asda over the same period.
Tesco, with an estimated £3 billion in online food sales, said it has signed up 40,000 customers to one of its Delivery Saver subscription schemes in the past six months. It charges from £7.50 a month in return for free deliveries. Asda said earlier this week that it had launched a cheaper offer.
Tesco said it also introduced Click & Collect drive through collection points to nearly 200 stores by the end of the period and will open its sixth 'dotcom' delivery warehouse in Erith, East London later this month.
'Our Erith facility will build on the learnings from our openings to date, with an increased level of automation and, as a result, a greater capacity in terms of the volume and number of orders,' the company said in the statement.
Tesco primarily uses in-store picking by staff to prepare deliveries but it has increasingly expanded its capabilities through the use of dotcom-only 'dark stores'. Asda and Waitrose have pursued similar strategies. However, according to analysis by the grocery industry body, the IGD, Sainsbury's is committed to in-store picking 'seeing cost benefits though not having to invest in dedicated dark stores'.
In 2012, according to research by Mintel: Tesco had 37.1 per cent last of the market in 2012; Sainsbury's 17.4 per cent; Asda 17.2 per cent; Ocado 12 per cent; and Waitrose 3.9 per cent. Other suppliers and retailers - such as wine merchants, dairy deliveries and Christmas hamper sales - make up 12.3 per cent.
Frozen food chain Iceland entered the market this year and Morrisons is expected to test its online delivery service before Christmas with a full launch in January. The Co-operative Group said recently that it also plans to begin a delivery service and Amazon is also understood to be considering a service in Europe, most likely using the UK as a beachhead.
The grocery industry body, the IGD, expects supermarket online food deliveries to double from £5.6 million last year to £11.1 billion in 2017.
Meanwhile, Tesco Direct, the non-food division of the online operation, remains a 'key part' of the multichannel strategy. The offer has been edited in line with the in-store product ranges and the supermarket said the profitability of the operation has 'improved'. It is not clear, if any, how much money the non-food operation makes and it has historically been unprofitable.
Last week it launched its own tablet computer, the Hudl, which it hopes will support its digital and online plans.
Reaching the target means that Sainsbury's, which overtook Asda by market share in the food delivery business last year, has become only the second grocer to do so.
Sainsbury's revealed the milestone as it announced that online grocery sales rose 15 per cent in the 16 weeks to September 28, according to a statement released to the City.
But it appears to be falling behind its larger rival. Online food sales at Tesco.com increased by nearly 13 per cent in the 26 weeks to August 24, which means, due to the relative size of its delivery business compared to rivals, it has increased it market share by almost three times Sainsbury's and Asda over the same period.
Tesco, with an estimated £3 billion in online food sales, said it has signed up 40,000 customers to one of its Delivery Saver subscription schemes in the past six months. It charges from £7.50 a month in return for free deliveries. Asda said earlier this week that it had launched a cheaper offer.
Tesco said it also introduced Click & Collect drive through collection points to nearly 200 stores by the end of the period and will open its sixth 'dotcom' delivery warehouse in Erith, East London later this month.
'Our Erith facility will build on the learnings from our openings to date, with an increased level of automation and, as a result, a greater capacity in terms of the volume and number of orders,' the company said in the statement.
Tesco primarily uses in-store picking by staff to prepare deliveries but it has increasingly expanded its capabilities through the use of dotcom-only 'dark stores'. Asda and Waitrose have pursued similar strategies. However, according to analysis by the grocery industry body, the IGD, Sainsbury's is committed to in-store picking 'seeing cost benefits though not having to invest in dedicated dark stores'.
In 2012, according to research by Mintel: Tesco had 37.1 per cent last of the market in 2012; Sainsbury's 17.4 per cent; Asda 17.2 per cent; Ocado 12 per cent; and Waitrose 3.9 per cent. Other suppliers and retailers - such as wine merchants, dairy deliveries and Christmas hamper sales - make up 12.3 per cent.
Frozen food chain Iceland entered the market this year and Morrisons is expected to test its online delivery service before Christmas with a full launch in January. The Co-operative Group said recently that it also plans to begin a delivery service and Amazon is also understood to be considering a service in Europe, most likely using the UK as a beachhead.
The grocery industry body, the IGD, expects supermarket online food deliveries to double from £5.6 million last year to £11.1 billion in 2017.
Meanwhile, Tesco Direct, the non-food division of the online operation, remains a 'key part' of the multichannel strategy. The offer has been edited in line with the in-store product ranges and the supermarket said the profitability of the operation has 'improved'. It is not clear, if any, how much money the non-food operation makes and it has historically been unprofitable.
Last week it launched its own tablet computer, the Hudl, which it hopes will support its digital and online plans.
Wednesday, 2 October 2013
Argos Boosts Digital Team With Second EMI Executive
Argos has appointed a new 'forward thinking' head of digital innovation as part of its three-year strategy to become a leading digital retailer.
Neil Tinegate reports to Argos digital director Bertrand Bodson, who worked with Tinegate at EMI and who was appointed in July, and will form part of the Argos digital leadership team.
Tinegate was vice-president, digital products at EMI Music and was 'instrumental' in setting up OpenEMI, a bridge between the group and music-tech start-ups. He also worked at Topshop-owner Arcadia Group, where he spearheaded several business change projects.
His appointment follows the three-year plan given by Argos to investors last October that it said will see the chain become a 'digital leader' in the retail sector.
Argos, owned by Home Retail Group, said Tinegate would perform a 'vital' role in the plan.
Bodson said: 'I know [Neil] will bring new ideas and approaches, combined with a grounded, solutions-driven approach at this exciting time for the business. His role is to make sure we are forward thinking and able to move with agility and pace to deliver tangible results.'
Argos also appointed Stephen Vowles as marketing director and 'voice of the customer' last month.
Neil Tinegate reports to Argos digital director Bertrand Bodson, who worked with Tinegate at EMI and who was appointed in July, and will form part of the Argos digital leadership team.
Tinegate was vice-president, digital products at EMI Music and was 'instrumental' in setting up OpenEMI, a bridge between the group and music-tech start-ups. He also worked at Topshop-owner Arcadia Group, where he spearheaded several business change projects.
His appointment follows the three-year plan given by Argos to investors last October that it said will see the chain become a 'digital leader' in the retail sector.
Argos, owned by Home Retail Group, said Tinegate would perform a 'vital' role in the plan.
Bodson said: 'I know [Neil] will bring new ideas and approaches, combined with a grounded, solutions-driven approach at this exciting time for the business. His role is to make sure we are forward thinking and able to move with agility and pace to deliver tangible results.'
Argos also appointed Stephen Vowles as marketing director and 'voice of the customer' last month.
Asda Launches Three Month 'Delivery Pass'
Asda has launched a three month 'delivery pass' that allows shoppers to get free deliveries for an upfront fee across its groceries, fashion and home ranges.
The pass, designed to encourage shopper retention in the festive period, is available for three months at an introductory price of £15. After November 1, the price of a three month pass will increase to £24.
Asda said the pass is cheaper than Tesco whose three month Delivery Saver is priced at £36 and compares to £32.97 at Ocado which charges £10.99 a month for a twelve month Smart Pass contract.
Asda's pass requires customers to make a £40 minimum spend and is limited to one order per day. The supermarket launched its £8 one-month pass at the end of August which it says was so popular it sold at the rate of one every 10 seconds for the first week.
The supermarket said 50 per cent of its shoppers are worried about the cost of Christmas. A quarter said they are budgeting more than they have previously to make Christmas a special occasion.
Glyn Williams, Asda’s digital marketing director, said: 'The delivery pass is the latest way we're holding down the cost of Christmas and delivering in store prices direct to the front door. Last year was our biggest multichannel Christmas ever with 10 million people visiting ASDA.com per week through December. This Christmas is set to be even bigger and will see 75 per cent of Asda customers shop multichannel.'
Asda says it is Britain’s second biggest online grocer after Tesco and ahead of Sainsbury's and Ocado. It opened a third purpose-built 'dark store' picking centre in Nottingham in March this year to support future growth.
The pass, designed to encourage shopper retention in the festive period, is available for three months at an introductory price of £15. After November 1, the price of a three month pass will increase to £24.
Asda said the pass is cheaper than Tesco whose three month Delivery Saver is priced at £36 and compares to £32.97 at Ocado which charges £10.99 a month for a twelve month Smart Pass contract.
Asda's pass requires customers to make a £40 minimum spend and is limited to one order per day. The supermarket launched its £8 one-month pass at the end of August which it says was so popular it sold at the rate of one every 10 seconds for the first week.
The supermarket said 50 per cent of its shoppers are worried about the cost of Christmas. A quarter said they are budgeting more than they have previously to make Christmas a special occasion.
Glyn Williams, Asda’s digital marketing director, said: 'The delivery pass is the latest way we're holding down the cost of Christmas and delivering in store prices direct to the front door. Last year was our biggest multichannel Christmas ever with 10 million people visiting ASDA.com per week through December. This Christmas is set to be even bigger and will see 75 per cent of Asda customers shop multichannel.'
Asda says it is Britain’s second biggest online grocer after Tesco and ahead of Sainsbury's and Ocado. It opened a third purpose-built 'dark store' picking centre in Nottingham in March this year to support future growth.
Tuesday, 1 October 2013
Express Gifts Sales Rise 10.8%
Online shopping group Findel has reported sales at its Express Gifts division rose 10.8 per cent in the past six months.
The growth in the period to September 27 is an acceleration compared to the 8 per cent increase in the first 16 weeks of the financial year.
'Our investment in value and product range continues to yield increased total cash returns and contributed to an increase in customer numbers, which positions the business well as we move into the peak Christmas period,' the company said in a statement this morning.
Express Gifts includes catalogue and online businesses Studio, Ace and Health & Home. The division, which already has a sourcing hub in India, is expected to open an office in Shanghai in the coming weeks to broaden its range of products across the business.
Total sales at Findel, which also operates an educational supplies business, increased 5.2 per cent and operating profit in the period, to be announced next month, has increased.
Findel also said its Kitbag online sports business struggled in the period with sales dropping 6.7 per cent because of the absence of major sporting events such as last year's European Championships and the Olympics. Kitbag, which has implemented a turnaround strategy, is expected to report a loss for the period when complete performance figures are released next month.
The growth in the period to September 27 is an acceleration compared to the 8 per cent increase in the first 16 weeks of the financial year.
'Our investment in value and product range continues to yield increased total cash returns and contributed to an increase in customer numbers, which positions the business well as we move into the peak Christmas period,' the company said in a statement this morning.
Express Gifts includes catalogue and online businesses Studio, Ace and Health & Home. The division, which already has a sourcing hub in India, is expected to open an office in Shanghai in the coming weeks to broaden its range of products across the business.
Total sales at Findel, which also operates an educational supplies business, increased 5.2 per cent and operating profit in the period, to be announced next month, has increased.
Findel also said its Kitbag online sports business struggled in the period with sales dropping 6.7 per cent because of the absence of major sporting events such as last year's European Championships and the Olympics. Kitbag, which has implemented a turnaround strategy, is expected to report a loss for the period when complete performance figures are released next month.
Original Asos Director Becomes Firm's Latest High Profile Departure
James Hart, the first employee at Asos alongside the two founding directors, has resigned after 14 years to pursue another career.
His departure comes after a year of management changes at the fashion etailer and emerges amid rumours the Asos board is paving the way for a listing in the FTSE 100.
Hart - who has no official title but describes himself as chief product director - has worked with chief executive Nick Robertson since graduating in 1996 and was the first employee at the business when it launched in 2000, working alongside Robertson's co-founder Quentin Griffiths.
His departure follows the short-lived tenure of Kate Bostock, the former Marks & Spencer womenswear boss who left in July after seven months, and head of human resources Michelle Emerson who left the same month.
More recently, Asos appointed another former Marks & Spencer executive Ian Dyson as a non-executive in August and, last month, is understood to have drafted in Amazon Europe's finance vice-president Shaun McCabe - as yet unconfirmed, but who is expected to become finance director.
The upheaval is understood to reflect a deep shift in the firm's strategic footing as it prepares for global growth to compete with European, Asian and American fashion giants in the etail sector. It is rumoured that Asos also wants to shift its listing from its current place on Aim to the FTSE which, with a market capitalsation of more than £4 billion would guarantee it a place in the FTSE 100 and dramatically shift its standing in the eyes of major investors.
Among the other senior changes have been the departure of long-serving product director Robert Bready and respected buying director Caren Downie, who left last year after Bostock's appointment. International director and former finance director Jon Kamaluddin left in April after nine years in the job.
Meanshile, Asos reorganised its buying teams last month which included the promotion of Maria Hollis to retail director and the creation of a number of other new roles. Simon Platts was also appointed souring director from JD Sports' outdoor business. Asos also appointed former Amazon UK managing director Brian McBride as chairman in October last year - replacing Lord Alli who had been at the firm since 2001.
Hart, who is on a six month contract, told trade magazine Drapers: 'I'm genuinely open to consider anything and and I'm leaving with enough time in my career to start something new.'
Hart said he would like 'to make a difference to the consumer... whether in a start-up environment or starting something on my own.'
It is not clear whether Hart will be replaced. His decision comes after a series of departures over the past 12 months that included the arrived and shock exit of former Marks & Spencer's womenswear boss Kate Bostock.
Departures from Asos in past 12 months:
James Hart, chief product director (September)
Michelle Emerson, head of human resources (July)
Kate Bostock, executive director product and trading (July)
Jon Kamaluddin, finance director (April)
Robert Bready, product director (October 2012)
Caren Downie, buying director (October 2012)
Lord Waheed Alli, chairman (Octoner 2012)
Arrivals:
Shaun McCabe, finance director (as yet unconfirmed)
Simon Platts, sourcing director (August)
Ian Dyson, non-executive director (August)
Kate Bostock, executive director product and trading (October 2012, subsequently left - see above)
Brian McBride, chairman (October 2012)
His departure comes after a year of management changes at the fashion etailer and emerges amid rumours the Asos board is paving the way for a listing in the FTSE 100.
Hart - who has no official title but describes himself as chief product director - has worked with chief executive Nick Robertson since graduating in 1996 and was the first employee at the business when it launched in 2000, working alongside Robertson's co-founder Quentin Griffiths.
His departure follows the short-lived tenure of Kate Bostock, the former Marks & Spencer womenswear boss who left in July after seven months, and head of human resources Michelle Emerson who left the same month.
More recently, Asos appointed another former Marks & Spencer executive Ian Dyson as a non-executive in August and, last month, is understood to have drafted in Amazon Europe's finance vice-president Shaun McCabe - as yet unconfirmed, but who is expected to become finance director.
The upheaval is understood to reflect a deep shift in the firm's strategic footing as it prepares for global growth to compete with European, Asian and American fashion giants in the etail sector. It is rumoured that Asos also wants to shift its listing from its current place on Aim to the FTSE which, with a market capitalsation of more than £4 billion would guarantee it a place in the FTSE 100 and dramatically shift its standing in the eyes of major investors.
Among the other senior changes have been the departure of long-serving product director Robert Bready and respected buying director Caren Downie, who left last year after Bostock's appointment. International director and former finance director Jon Kamaluddin left in April after nine years in the job.
Meanshile, Asos reorganised its buying teams last month which included the promotion of Maria Hollis to retail director and the creation of a number of other new roles. Simon Platts was also appointed souring director from JD Sports' outdoor business. Asos also appointed former Amazon UK managing director Brian McBride as chairman in October last year - replacing Lord Alli who had been at the firm since 2001.
Hart, who is on a six month contract, told trade magazine Drapers: 'I'm genuinely open to consider anything and and I'm leaving with enough time in my career to start something new.'
Hart said he would like 'to make a difference to the consumer... whether in a start-up environment or starting something on my own.'
It is not clear whether Hart will be replaced. His decision comes after a series of departures over the past 12 months that included the arrived and shock exit of former Marks & Spencer's womenswear boss Kate Bostock.
Departures from Asos in past 12 months:
James Hart, chief product director (September)
Michelle Emerson, head of human resources (July)
Kate Bostock, executive director product and trading (July)
Jon Kamaluddin, finance director (April)
Robert Bready, product director (October 2012)
Caren Downie, buying director (October 2012)
Lord Waheed Alli, chairman (Octoner 2012)
Arrivals:
Shaun McCabe, finance director (as yet unconfirmed)
Simon Platts, sourcing director (August)
Ian Dyson, non-executive director (August)
Kate Bostock, executive director product and trading (October 2012, subsequently left - see above)
Brian McBride, chairman (October 2012)
Ocado Boss Risks Another Swipe At John Lewis - This Time Over Stake Sale
One of the founders of Ocado has questioned the judgement of its business partner John Lewis for selling its stake in the business before the recent share price ramp.
Gissing used an interview with Management Today to deride John Lewis' decision to reduce the shareholding to nothing as 'ironic' in light of the current valuation - just below £4 a share.
John Lewis, which owns Ocado's main supplier Waitrose, transferred its shareholding in Ocado to its pension fund which then sold off the 10.4 per cent stake fopr 265 pence a share in 2011. The sale came a year after Ocado floated in 2010 for 180 pence a share.
Gissing said: 'I think it's ironic that, at one point, John Lewis owned 44 per cent of our business. Now the most vibrant part of their operation is johnlewis.com. They could have gone from 44 per cent to 49 to 51 and eventually owning 100 per cent of us..... which they could plug johnlewis.com into. Then they'd have what Jeff Bezos dreams of creating in the future.'
Gissing gave the interview alongside Ocado co-founder and chief executive Tim Steiner who recently entered a war of words with Waitrose managing director Mark Price.
Price, who is tied into a contract with Ocado until 2017 but who is also pushing Waitrose.com, called his lawyers to examine breach-of-contract issues after Ocado signed a separate partnership with mass-market grocer Morrisons.
During the wide ranging interview, in which the pair talked about issues including their time at Goldman Sachs, the state of the banking system and the praise they received from Amazon founder Jeff Bezos, Steiner told the magazine: 'It's all over [the spat the Waitrose].'
He continued: 'It was a misunderstanding. I had a chat with Charlie (Mayfield, John Lewis Partnership chairman) and he's fine. There is no bad will.' When pushed on his relationship with Price he replied: 'Well, Charlie is boss...' - a remark unlikely to help his relationship with Price, who was promoted to John Lewis Partnership deputy chairman in July.
Gissing used an interview with Management Today to deride John Lewis' decision to reduce the shareholding to nothing as 'ironic' in light of the current valuation - just below £4 a share.
John Lewis, which owns Ocado's main supplier Waitrose, transferred its shareholding in Ocado to its pension fund which then sold off the 10.4 per cent stake fopr 265 pence a share in 2011. The sale came a year after Ocado floated in 2010 for 180 pence a share.
Gissing said: 'I think it's ironic that, at one point, John Lewis owned 44 per cent of our business. Now the most vibrant part of their operation is johnlewis.com. They could have gone from 44 per cent to 49 to 51 and eventually owning 100 per cent of us..... which they could plug johnlewis.com into. Then they'd have what Jeff Bezos dreams of creating in the future.'
Gissing gave the interview alongside Ocado co-founder and chief executive Tim Steiner who recently entered a war of words with Waitrose managing director Mark Price.
Price, who is tied into a contract with Ocado until 2017 but who is also pushing Waitrose.com, called his lawyers to examine breach-of-contract issues after Ocado signed a separate partnership with mass-market grocer Morrisons.
During the wide ranging interview, in which the pair talked about issues including their time at Goldman Sachs, the state of the banking system and the praise they received from Amazon founder Jeff Bezos, Steiner told the magazine: 'It's all over [the spat the Waitrose].'
He continued: 'It was a misunderstanding. I had a chat with Charlie (Mayfield, John Lewis Partnership chairman) and he's fine. There is no bad will.' When pushed on his relationship with Price he replied: 'Well, Charlie is boss...' - a remark unlikely to help his relationship with Price, who was promoted to John Lewis Partnership deputy chairman in July.
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