Ocado unveils double-digit sales growth
Ocado today unveiled double-digit sales growth, a pattern that chief executive Tim Steiner expects to continue as a result of commitment to innovation and customer service.
The online grocer reported gross group sales had reached £272.0m in the 12 weeks to August 9. That's 17.3% more than at the same time last year, and includes revenue from Ocado's agreement to supply the fulfilment services and technology that underpin the Morrisons.com operation. Gross retail sales from Ocado.com, Fetch.co.uk and Sizzle.co.uk hit £252.0m during the period, 15.3% more than last year.
Order numbers grew by 16.6% to 190,000 but the average size of the order fell by 1.1% to £110.46 from £111.64. Within this, average order sizes for Fetch and Sizzle fell by 0.6%.
Chief executive officer Tim Steiner said: "We are pleased with the continued steady growth of our business in a retail environment that remains tough.
"We believe our commitment to improving what we offer to customers through innovation and our proprietary IP will support further growth. Notwithstanding the competitive nature of the marketplace, we expect to continue growing slightly ahead of the online grocery market."
Commenting on the figures, Fiona Cincotta, senior market analyst at finspreads.com
, said the figures were "hugely impressive given the fierce price war that is gripping the grocer sector currently."
She added: "However, despite these solid results the city is showing signs of disappointment, with the share price falling 0.5%, as it was hoping for some sign of a much anticipated overseas deal. The lack of news flow in this area is making investors cautious as to the future of Ocado, especially given Amazon´s coming launch of its grocery delivery service Fresh in the UK." Image: Ocado