Online grocer said it is back on track for sales growth and profitability
Ocado Retail has reported an improved set of results and stated it is on track to restore sales momentum.
In a trading statement covering the first quarter of 2023, the retailer – a joint venture between Ocado Group and Marks & Spencer – reported revenue up 3.4 per cent on last year to £584m. Active customer numbers were up 13.8 per cent at 951,000 by the end of the period.
However average basket value on Ocado.com was flat and there has been a 7.5 per cent decline in basket size to 45 items.
The company said its Perfect Execution programme has driven improved service levels, with on-time delivery and order accuracy back to pre-pandemic levels and deliveries now back to the kitchen table. It added that its range of M&S products has increased, while there has been further investment in value through the launch of the Ocado Price promise.
Chief executive Hannah Gibson said: “We continue to attract more and more customers to Ocado, by investing in great value for customers including our new Ocado Price Promise and providing unbeatable choice and service. This means more perfect orders that are on time and in full, with deliveries back to the kitchen table.
“We are also championing smaller suppliers and creating more of the M&S magic for customers by offering more of the products they love. While the trading environment remains challenging, we expect to build momentum through the second half of the year, as we improve our proposition, grow our customer base, and no longer lap Covid shopping behaviours. This solid 2023 performance will enable us to return to sales growth and profitability.”
