Ocado has upwardly adjusted its full-year sales expectations owing to significant growth in the third quarter.
- Retail sales surged by 15.5% to £658m, demonstrating the company’s robust performance.
- Weekly orders increased by 14.7% to 437,000, highlighting enhanced customer engagement.
- A strategic reduction in prices helped improve customer value perceptions, despite a flat average basket value.
- The company anticipates achieving a double-digit percentage growth, surpassing previous forecasts.
Ocado has announced an enhancement to its full-year sales guidance, following a notable 15.5% increase in retail sales during the third quarter, reaching £658m by the beginning of September. This adjustment reflects Ocado’s ability to exceed its prior sales growth projections from mid to high single digits to the anticipated low double digits.
Significant growth was also seen in the average number of orders per week, rising by 14.7% to an impressive 437,000. This rise was attributed to a growth in active customers, which saw a 10.3% increase compared to the previous year, reaching 1.06 million. Enhanced customer frequency was fostered by improved availability of delivery slots and a strengthened overall service proposition.
In a strategic move to boost its market competitiveness, Ocado has initiated its sixth series of price reductions since June 2023. The company’s investment in price cuts has positively influenced customer perceptions of value, with average selling prices decreasing by 0.4%, a stark contrast to the 2% UK grocery inflation rate. Although the average value of a customer basket remained relatively consistent at £120.97, there was a slight year-on-year increase in basket size.
Hannah Gibson, Ocado Retail’s chief executive, articulated the company’s dedication to providing exceptional customer service and value. She highlighted the positive momentum being achieved through a broader selection, including more M&S food offerings, better convenience with enhanced delivery slot availability, and superior product availability. She expressed optimism about future developments, emphasizing ongoing commitment to Ocado’s value proposition.
Ocado’s strategic initiatives and market adaptability have set the stage for a promising growth trajectory in the coming year.
