Member Article

Ocado sees 15% sales jump despite supermarket squeeze

Online supermarket Ocado has reported a sizeable 15% rise in sales, defying the squeeze felt by the big four supermarkets in the last 12 months.

The online grocer, which first began trading in the South-East but is continuing to expand across the country, saw gross retail sales rise to £1.1bn in the 52 weeks ending 29th November last year in its final results that were posted today. This represents almost a 15% jump over 2014’s figures which stood at £972m.

Ocado also saw its active customer numbers rise by over 12% to 509,000 up from 453,000 in 2014 and, while the average basket value declined by 2.1% due to price deflation, average weekly orders were up to 195,000, representing a 16.8% increase.

The figures come at a time when the traditional big supermarkets are feeling the pinch due to the combined pressures of price deflation and stern competition from budget retailers such as Lidl and Aldi.

Commenting on the results, Tim Steiner, Chief Executive Officer of Ocado, said: “We are pleased to announce results today which illustrate the progress Ocado has made through its clear focus on innovation and customer service.

“The continued enhancement of Ocado’s industry-leading technology and investment into our retail proposition over the course of the year has meant our customers now have greater choice, competitive prices and consistently high order accuracy and on-time delivery.

“As a result, customer numbers grew, reflected in strong revenue growth in a very challenging market environment.”

Last year also saw Ocado providing online grocery delivery for Morrisons which, in its first 12 months of operation, has reached almost £200m in sales.

Steiner explained how he sees the Morrisons deal as the first step in the firm’s move into other territories when he added: “Our ability to package our unique proprietary technology, including our equipment solution, for retail partners outside the UK through our Ocado Smart Platform is proving to be of great interest to a significant number of retailers. We expect to sign multiple deals in multiple territories in the medium term.

“We are transforming the shopping experience for the benefit of our customers in the UK, and expect to do so for customers in other countries through Ocado Smart Platform. We look forward to making further progress over the current financial year.”