Chief executive, Ocado (2011 rank: 4)

Tim Steiner

Tim Steiner doesn’t do modesty. His ambition is for Ocado to become the world’s most successful online grocery retailer, delivering more groceries into people’s houses than any other. Neither is he prone to self-doubt, which is fortunate considering the number of critics giving the online grocer a kicking.

Detractors, including City analysts such as Clive Black and Philip Dorgan, base their bearish prognoses on underwhelming revenue growth, meagre profits and, perhaps most damning of all, the fact that competitors’ online sales are growing faster than Ocado’s. Others believe Ocado’s competitive advantage in areas such as service, range, deliveries and technology is slowly being eroded by rivals, while its commitment to match Tesco on price is putting a strain on the bottom line. 

Yet Steiner continues to defend his business with characteristic vigour. His trump card is the opening of Ocado’s second customer fulfilment centre in Warwickshire in the first quarter of 2013, which should go a long way to solving longstanding capacity problems at its Hatfield base.

The opening of several new ‘spokes’ – small distribution centres as opposed to the Hatfield hub – have already extended Ocado’s reach across the UK, including into Scotland. Steiner hopes a concerted marketing drive will attract the extra customers Ocado will need to justify the investment in its new, state-of-the-art distribution centre due to open in Dordon, north Warwickshire next year.

Non-food is another key plank of Steiner’s growth strategy. During the summer, Ocado revealed it would spend £5m on fitting out a non-food warehouse as a prelude to launching a host of dedicated non-food sites to broaden the business.

One question that Steiner will continue to have to field is over the future of Ocado’s distribution arrangement with Waitrose. Analysts fear that if Waitrose was to invoke the break-clause in its Ocado contract in 2017, the online grocer’s appeal among its middle-England devotees would be greatly diminished. Once again, Steiner may be called upon to argue the case for the defence.