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Ocado, founded in 2000 by three Goldman Sachs traders is the only online only grocery retailer. It operates a central distribution process, whereby all supplies and orders are processed through large Customer Fulfilment Centres (CFCs). The firm had long been operating close to maximum capacity with only one CFC. The recent addition of CFC2 in Dordon, Warwickshire provides the largest single grocery store in the world (replacing CFC1 for that title). The online food market continues to grow steadily, and will pose significant challenges for the store-based food retailers. Ocado operate a unique business model and have central warehousing advantages, providing Ocado an economic advantage versus its larger, store-based competitors. Having struck a deal with Morrisons recently, we are confident that Ocado’s future can be successful.