Ocado Retail, the recently completed joint venture between the online grocer and Marks & Spencer, has reported healthy growth for the third quarter to 1 September.
M&S food won’t actually be part of Ocado’s delivery service until September 2020, so the reported figures relate to Ocado’s existing consumer offer.
Ocado’s retail revenue rose 11.4% to £386.3m over the latest period, compared with first half growth of 9.7%. Average orders per week grew 12.1% to 314,000 as more slots became available, but the average order size was down 0.8% to £105.4 due to greater frequency of purchase.
The group stated that growth had been helped by additional capacity at its fourth Customer Fulfilment Centre (CFC) in Erith.
Ocado Retail’s Chief Executive Melanie Smith said: “These first set of results from the joint venture between Ocado Group and M&S show the resilience of Ocado following the Andover fire and the momentum the business now has. As we continue to enhance our offering and add more capacity in the UK, our leading partnership will deliver the very best experience to an ever-growing number of customers.
“Bringing Ocado and M&S together on-line will give UK consumers even greater choice, value and service and will create important new opportunities for our colleagues, suppliers, and other stakeholders.”
NAM Implications:
- Time to fine-tune the M&S assortment…
- …on the back of encouraging first signs.
- Watch this space…
