Ocado has announced a significant revision of its annual sales forecast following a remarkable boost in retail performance.
- The company’s online supermarket arm experienced a 15.5% increase in sales during the third quarter, reaching £658 million, compared to the previous year.
- Order volumes also saw substantial growth, with a 14.7% rise in average weekly orders.
- Active customer numbers increased by over 10%, reflecting higher engagement with Ocado’s improved delivery and value offerings.
- Despite competitive grocery inflation, a strategic focus on pricing has enhanced Ocado’s value perception among consumers.
Ocado has made a notable adjustment to its full-year guidance, projecting a low double-digit growth rate, a shift from the prior mid-to-high single-digit expectation. This upward revision is attributed to a significant acceleration in the company’s retail sales, particularly in the third quarter, where sales soared by 15.5% to reach £658 million for the period ending 1 September. The volume of orders too has witnessed a corresponding growth, rising by 15.4% compared to the same timeframe the previous year.
The increase in average weekly orders, now standing at 437,000, signifies a 14.7% year-on-year growth. This boost has been largely driven by a 10.3% rise in active customers, with the total reaching 1.06 million. Enhanced delivery slot availability and competitive propositions have underpinned this trend, bolstering the frequency and consistency of customer transactions with Ocado.
In a strategic response to the broader market trends, Ocado has implemented several rounds of price reductions since June 2023. This approach has been particularly effective in lightening the impact of grocery inflation, recorded at 2%, whilst the average selling price saw a marginal decrease of 0.4%. Consequently, the perceived value improvement has resonated well with customers, even as the average basket value remained steady at £120.97.
Expressing satisfaction with the current trajectory, Ocado Retail’s CEO Hannah Gibson remarked on the company’s steadfast commitment to a customer-centric strategy. She highlighted the continuous improvement in service quality and value, noting: “Our strategy remains focused on giving our customers unbeatable choice, unrivalled service and reassuringly good value.” This message underscores Ocado’s deliberate emphasis on enhancing its market offering, adding more choices, and ensuring superior service delivery.
Overall, Ocado’s strategic initiatives and customer-focused improvements have been instrumental in its robust sales performance and optimistic projections for the year.
