Ocado has revised its year-end growth projections upward following a notable increase in its retail sales during the third quarter.
- The online supermarket experienced a 15.5% sales increase, reaching £658 million, alongside a 15.4% rise in sales volume.
- Projected sales growth has shifted from mid to high single digits to a low double-digit percentage for the year.
- Weekly orders saw an impressive 14.7% rise, supported by a 10.3% increase in active customers.
- Price reductions and enhanced delivery options have been pivotal in boosting customer perception and sales.
Ocado has adjusted its full-year growth outlook positively thanks to an impressive 15.5% surge in sales during the third quarter, amounting to £658 million. This significant rise is backed by a 15.4% increase in sales volume compared to the previous year, showcasing robust demand and strategic market position.
Initially anticipating a mid to high single-digit percentage increase, Ocado now expects sales growth to reach a low double-digit percentage for the year. This shift marks a substantial step forward, indicative of the company’s adaptive strategies and responsive growth measures.
Weekly orders have climbed by 14.7%, reflecting an increase in active customers, which have grown by 10.3% over the past year to reach 1.06 million. This rise in customer base underscores the effectiveness of Ocado’s service improvements and value offerings.
Recent initiatives, such as the sixth round of price reductions since June 2023, have fortified Ocado’s value perception amongst customers. The average selling price dropped by 0.4%, contrasting with a UK grocery inflation rate of 2%. Despite the stability in basket value at £120.97, there has been a slight year-on-year increase in basket size, indicating enhanced customer engagement.
Ocado’s retail chief executive, Hannah Gibson, emphasises their strategy of offering unparalleled choice, service, and value. She highlights the significant momentum gained as more customers are shopping more frequently, benefiting from broader selections such as increased M&S food options and improved delivery slot availability, enhancing Ocado’s commitment to value through initiatives like the Ocado Price Promise and Big Price Drop.
Ocado’s effective strategies and market responsiveness have steered them towards a more optimistic growth outlook.
