Revenue rises 35% at Ocado for Q4

Ocado has announced its trading statement for the 13 weeks to 29 November 2020, showing Retail Revenue grew by 35%.

The figure reflects the strong demand for online grocery and the continuation of a smoothed trading week compared to the peaks and troughs that reflected normal shopping habits pre-COVID.

Also, the growth rate relative to Q3 is the result of the seasonality of the quarter.

The average order size came to £133, as customer shopping behaviour continued to normalise. Progress in orders per week reflects underlying trends in basket size, and Erith CFC ended the period at over 130,000 orders per week.

Customers continued to embrace the full M&S range with the biggest selling lines coming from everyday essentials in the M&S fresh categories.

Melanie Smith, Ocado Retail's CEO, said, 'We continue to make good progress bringing even greater choice, quality, and value to our customers following the switchover to M&S at the beginning of September.

'At Ocado Retail we are constantly looking to raise the bar even further and the addition of M&S products to our grocery ranges has enhanced what was already the widest choice of products available online.

'Despite exceptional demand during the period, we have high rates of on-time customer delivery and low rates of substitutions. This, together with our commitment to competitive prices and the freshest produce available, all delivered in a way that minimises handling and maximises hygiene, has strengthened our credentials as the UK online grocery market leader in terms of customer experience.

'With three new warehouses opening in 2021 which will ultimately give us 40% more capacity to our business, we look forward to being able to offer more slots to existing customers while welcoming new customers to Ocado and showing them what we can offer'.

Chairman Tim Steiner said, This has been an exceptionally difficult year for everyone in the country and indeed around the world. Throughout the COVID crisis, we have endeavoured to bring the best and most reliable customer experience to as many households as possible.

'I would like to pay tribute to all my colleagues who have played a part in making this happen, in particular our front line staff and those working in our Customer Fulfilment Centres, who have worked relentlessly to help feed the nation.

'I am incredibly proud of the agility the business has demonstrated through this challenging ?me. We enter the holiday period with confidence and look ahead to be?er ?mes for all in 2021'.