Ocado set for FTSE 100 relegation after slump in share price

Ocado is facing demotion from the FTSE 100 index this week following a slump in its share price.

The online grocery delivery firm boomed in lockdown, with its share price hitting a record 2,895p in September 2020.

But the easing of restrictions put the company on the back foot as consumers flocked back to supermarkets.

The firm has also suffered from weaker-than-expected demand for its robotic warehouse technology. As a result, the stock has tumbled over 85 per cent. 

Ocado’s losses ballooned to over £500million last year.

Analysts predict Ocado will be relegated tomorrow when the closing prices will be used to calculate the reshuffle.

It is another blow for its co-founder and chief executive Tim Steiner, who in the past year has seen the value of his 2.4 per cent stake plunge by £105million.