Ocado Group's founder and chief executive officer Tim Steiner will temporarily lead the company's Ocado Solutions division following the departure of John Martin, who is stepping down after 18 months in the role.

Shares in the British online supermarket and technology firm fell 6.9 per cent to 291.6 pence by 14:46 GMT on Wednesday on the London bourse, while the broader mid-cap FTSE-250 index was down 0.3 per cent.

The FTSE 250 company has been struggling to find a permanent leader for its technology business, which licenses Ocado's robot warehouse technology to supermarkets globally. Martin had been brought in on an interim basis in September 2023, following the departure of Luke Jensen, who had run the division for six years.

During his tenure, Martin expanded Ocado's global footprint by securing a deal with Saudi Arabian supermarket chain Panda Retail Co.

Ocado said it has launched a formal search for a longer-term successor to lead the division, which is seen by investors as a promising growth engine due to its potential to offer warehouse automation and software to major grocery players worldwide.

As part of the management shakeup, James Matthews, currently chief executive officer of Ocado Technology, will become deputy chief executive officer of the wider group to support Steiner in his other duties during this interim period.

Steiner thanked Martin for the "significant impact he has had despite the temporary nature of the role. In a short time, he helped to expand our global footprint by striking a deal with Panda in Saudi Arabia, and he has also strengthened our wider global partnerships."

Martin said Ocado was "a tremendous technology success story for UK plc, with world-leading products, amazing talent, and an enviable list of partners in some of the world's fastest-growing online markets."

Ocado, founded in 2000 by three former Goldman Sachs executives including Steiner, has experienced a turbulent few years. Its valuation has fallen from £22 billion during the pandemic to just £2.46 billion, pushing it out of the FTSE 100 index last year.

In February, the group reported a smaller annual pretax loss of £374.3 million ($473.8 million) for the year to 1 December 2024, compared with a loss of £387 million in the previous year. At the core earnings level, the group made £153.3 million, up from £51.6 million in 2022/23.

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