Ocado reports strong sales growth of 13%

Ocado Group has today announced its trading statement for the 13 weeks to 27 August 2017, which shows continued strong growth in revenue (Retail) of 13.1% at £312.7m.

The firm saw stronger growth in the average orders per week in Q3 - 254,000, up from 219,000 in like for likes, as it continues to acquire and retain customers.

The average order size fell slightly from £107.56, in the same period last year, to £106.25.

As at 27 August 2017, the group had cash and cash equivalents of £148.9m and external borrowings of £284.1m.

Tim Steiner, Ocado’s Chief Executive Officer, said, “We are pleased to report another strong quarter of growth. Our industry-leading technology has continued to set the bar for customer service and satisfaction and we continue to grow sales at a rate significantly in excess of the average for our industry.

'Recent innovations include Ocado becoming the first UK grocer to offer its customers Amazon’s Alexa voice-activated tool, meaning they can verbally modify their online grocery orders.

'As channel shift gathers pace we need to take advantage of our industry leadership and so we are scaling up our capacity in our revolutionary new Customer Fulfilment Centre (CFC) in Andover with the performance of the facility improving week by week. At the same time, we are preparing our fourth, and biggest, CFC to date in Erith, set to open in 2018.'

Steiner concluded, 'These investments, while increasing some costs in the short term, will allow us to meet the rapidly growing demand for our services from UK consumers while allowing us to offer the very latest technology to current and future customers of our Ocado Smart Platform.”