December 30, 2015 / 9:27 AM / 2 years ago

Ocado shares slump on concerns of competition from Amazon

LONDON (Reuters) - Shares in British online supermarket Ocado fell sharply on Wednesday, which traders attributed to concerns over growing competition from a rival service at Amazon.

An Ocado delivery truck drives through Fingest in southern England October 8, 2013. REUTERS/Suzanne Plunkett

Ocado shares were down 7.9 percent by 0910 GMT, making the stock the worst performer on Britain’s FTSE 250 mid-cap index and on the pan-European STOXX 600 index.

Trading volumes in Ocado stock were also above the average for the rest of the UK and European markets.

Both Paul Kavanagh, head of Patronus Partners Ltd, and Beaufort Securities’ Graeme Hatch cited Amazon UK’s plans to expand its ‘Pantry’ grocery delivery service as the main reason for the slide in Ocado’s shares.

Ocado’s share price fall put the stock at its lowest level in more than a year.

Reporting by Sudip Kar-Gupta, editing by Louise Heavens

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