fbpx
HomeNewsOcado Retail records first post-pandemic growth, marks 7.2% revenue surge in latest...

Ocado Retail records first post-pandemic growth, marks 7.2% revenue surge in latest quarter

Restaurant

Restaurants in Delhi-NCR grapple as heatwave takes toll: Foot traffic plummets, businesses suffer up...

0
As the blazing sun sends temperatures soaring past 40 degrees Celsius, the merciless grip of summer becomes even more apparent, making the idea of...
Taj

Taj maintains its position as the World’s Strongest Hotel Brand for the fourth consecutive...

0
Taj, the iconic brand under the umbrella of Indian Hotels Company (IHCL), has once again secured its position as the World’s Strongest Hotel Brand,...

Britain’s Ocado Retail saw a return to growth in the number of items sold during the last month of its latest quarter, marking its first uptick since the COVID-19 pandemic. This positive trend can be attributed to the increasing number of customers who are now shopping more regularly at the online supermarket.

The increase in volume played a crucial role in the 50/50 joint venture between Ocado Group and Marks & Spencer, resulting in a 7.2% surge in revenue, reaching £570 million (equivalent to $705 million) for its third quarter ending on August 27. This figure represents a notable improvement compared to the 5% growth reported in the first half.

Ocado Retail reported a “promising” start to its fourth quarter, and on Tuesday, shares of Ocado Group, which have experienced significant fluctuations in recent months, rose by 3.2%. Additionally, shares of M&S increased by 1.8%.

Prior to the emergence of COVID-19 in 2020, online sales accounted for approximately 7% of the total grocery market in Britain. This proportion reached its highest point, approximately 15%, during the height of the pandemic. However, as consumers gradually returned to physical stores, the online market share has subsequently decreased to around 10%.

During a press briefing, Ocado Retail’s CEO Hannah Gibson conveyed that the growth in volume was a result of a 1.5% uptick in active customers, now totaling 961,000. Additionally, there was a 1.9% increase in the average number of weekly orders, which reached 381,000, and a stabilization in the average basket size, maintaining at 44 items.

“Those three things coming together means that volume growth has come earlier than expected,” she said, noting it had not been anticipated until the fourth quarter.

Gibson said the shift to online shopping would step up when Britain’s cost of living crisis eases.

“If you just think about Generation Z of today, we’re not going to be seeing 10 or 11% of those shopping online, it is going to be more,” she said.

In the third quarter, Ocado Retail observed an 8.4% increase in its average selling price. It’s worth noting that this growth rate was below the market inflation rate, which currently stands at 12.2%, as reported by the latest industry data.

Gibson mentioned that since June, Ocado Retail has implemented price reductions on over 650 items.

Ocado Retail reiterated its anticipation of achieving “mid-single digit” revenue growth and maintaining “marginally positive” core earnings (EBITDA) for the entirety of the 2022-23 fiscal year, a significant improvement from the previous year’s loss of £4 million.

Latest articles

Tata Consumer Products eyes ful͏l-fledged F͏MCG sta͏tus, do͏u͏bl͏i͏ng ca͏pex͏ to INR 785 ͏Cr in FY25

Tata Consumer Products Ltd. i͏s s͏et to become a full͏y-fledged FMC͏G com͏pan͏y, with plans...

Bonn Group taps Katrina Kaif ͏as brand ambass͏ador for A͏meri͏can͏a͏ B͏iscui͏ts and Bon͏n Bakery

Bonn Group,͏͏ a͏ p͏rom͏ine͏nt FMC͏G fo͏o͏d ͏compa͏n͏y ͏i͏n ͏Ind͏ia, h͏a͏s a͏pp͏o͏int͏ed Bollywood͏ actor K͏a͏tri͏na...

101 reasons you love your father, here are 10 ways to let him know

This Father’s Day, let's celebrate these remarkable men with gifts that go beyond the...

Treasure Wine Estates and Snoop Dogg team up to launch RTD cocktail range

Treasure Wine Estates' 19 Crimes label has partnered with American rapper Snoop Dogg to...

Related Articles

British retail giant Tesco eyes profit surge as consumer confidence rebounds

Tesco, the largest retailer in Britain, projected a continued increase in profits, attributing it...

Bata India elevates sportswear retail experience with Power brand outlets

Bata India is overhauling its strategy for sports shoes and activewear by reintroducing Exclusive...

Smartsters expands retail footprint with exclusive store launch in Juhu

Smartsters, the renowned children's furniture brand, unveiled its 35th store at Linking Road, Juhu...
× Drop a, Hi?