Ocado reaches 500,000 orders a week for first time as M&S range attracts shoppers
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Ocado, the online grocery retailer, has reported a surge in sales as it attracted more customers who shopped more frequently. The company, which operates in partnership with Marks & Spencer, revealed that it generated £2.7bn in revenues for the year to December 1, marking a nearly 14% increase from the previous year.
This growth was fuelled by an increase in customer numbers and average weekly orders, as well as a wider range of products available for purchase, including M&S ranges. Over the past year, Ocado had approximately 1.1 million active customers, with the average value of each person’s shopping basket rising to around £122, according to the company.
As per the latest review by analysts Kantar, Ocado is the UK’s 10th largest supermarket, holding a 1.8% share of the grocery market. Tesco remains the country's largest, with a 28.5% market share. For the group's final quarter, Ocado reported revenues of £715.8m, a 17.5% increase compared to the same period last year. The average selling price of each item sold remained at £2.75, the company said.
It also highlighted its highest level of sales over the peak Christmas trading period, with shoppers indulging in items from the M&S party food selection like pigs in blankets, a variety of cheeses, and low and no alcohol drinks. Hannah Gibson, Ocado Retail’s chief executive, stated that reducing prices had helped attract more customers over the past year – with the online retailer promising to match prices with an equivalent order on Tesco’s website on some 10,000 products.
