Ocado reports increase in retail revenue

Ocado has announced a 10.8% increase in retail revenue to £429.1 million for its most recent quarter ending 1 December 2019.

The online retailer also reported a 10.4% increase in average orders per week to 350,000, while average order size remained the same.

"I am pleased to report further progress in bringing the Ocado offer to an ever increasing number of customers in the UK. Another strong quarter for customer orders means that we remain the fastest growing grocer in the country. The collaboration between M&S and Ocado Group is working well,” said Melanie Smith, Ocado Retail's CEO.

Ocado said it had also completed a review of its range over the last quarter, confirming that M&S has product substitutes at the same or a lower price than the current Waitrose supplier. Currently, Waitrose products represent 4,000 out of Ocado’s full 55,000 range, but the online grocer said it expects to add many more additional M&S lines to the range come autumn 2020.

“We have made good progress preparing for switchover date in September 2020, when the M&S food range will be available online for the first time. We are also planning fresh capacity, to offer customers more availability, and have new customer fulfilment facilities in Bristol and Purfleet, and a rebuilt state of the art facility at Andover, on the way. As a team, we could not be more excited.”

Ocado also noted that its Erith fulfilment centre ended the period at over 70,000 orders per week with efficiency better than its Hatfield site.