Gousto unveils major expansion plans after Covid sales surge

Food box company Gousto has unveiled major expansion plans after seeing sales surge in the first half of 2020. This will include creating 1,000 additional roles across its business by 2022 and the development of multiple new fulfilment centres where its recipe boxes are created and sent out for delivery.

The move is expected to enable Gousto to increase its customer fulfilment capacity by more than three-fold by 2022.

It means the meal kit delivery retailer is set to expand much faster than previously set out in May, when it revealed it had raised £33 million in funding to increase its workforce by more than 400.

Gousto has already surpassed its total revenue for 2019 in the first half of 2020. There was a particular surge in demand for food box deliveries in the second quarter of the year following the introduction of Covid-19 lockdown measures, a trend that appears to be continuing.

In the UK , Gousto enjoyed a 115% rise in eCommerce sales over this period. This was helped by successfully meeting a doubling demand from its fulfilment centre in Spalding, Lincolnshire, which delivered five million meals per month in June (2.5 million in January 2020). A second automated centre is to open before the end of the year, with a further two in the pipeline.

The company expects to deliver a profit for the first time in 2020 and also plans to harness its technological capacity to provide next-day delivery and meal customisation.

Timo Boldt, CEO and founder of Gousto, commented: “The UK recipe box market has come of age with the recent lockdown accelerating structural trends which were already firmly underway. We have maintained record sales, even with the progressive easing of lockdown restrictions and view this shift as part of a wider permanent redrawing of the grocery landscape.”

He added: “We will continue to invest across the business, creating 1,000 new jobs to at least triple capacity by 2022, in response to demand and continuously improving the customer proposition, as we strive to become the UK’s most loved way to eat dinner.”