- Ocado group sales are up 15.4% to £314m in the 12 weeks to August 7
- Retail sales at the online grocer grew 13.6% to £286.4m
- Average orders per week up 18.9% to 226,000 – its best volume performance in more than five years
- Average order size has dropped 3.4%
- Boss Tim Steiner said: “As the market remains very competitive, we are seeing sustained and continuing margin pressure.”
Ocado has posted a 15.4% increase in group sales in its third quarter but warned the market “remains very competitive”.
The online grocer’s group sales reached £314m in the 12 weeks to August 7.
Its retail sales climbed 13.6% to £286.4m in the same period.
Ocado’s chief executive Tim Steiner said the etailer had its best “volume performance in more than five years”, as the average number of orders per week jumped 18.9% to 226,000.
However, Steiner, who was the most-rewarded executive in the industry in the past year, according to exclusive Retail Week analysis, said: “As the market remains very competitive, we are seeing sustained and continuing margin pressure and there is nothing to suggest that this will change in the short term.”
Average order size dropped 3.4% to £108 during the period, compared with £111.75 the year before.
Ahead of the market
Steiner added: “We are confident that our commitment to further improving the customer experience through constant innovation, supported by our world-class proprietary technology, will allow us to continue to grow ahead of the online grocery market, and substantially ahead of the market overall.”
Last month, Ocado renegotiated its agreement with Morrisons, allowing the grocer to fulfil nationwide online orders in-store at a reduced cost.
Under the agreement, Morrisons staff will physically pick goods from its stores, with Ocado providing and maintaining the software platform.
Earlier this year, Ocado also opened its first Fabled store in London’s West End in conjunction with women’s magazine Marie Claire.
It is Ocado’s second bricks-and-mortar space following the opening of its Paws and Purrs shop in Stoke Newington.
In its last full year, Ocado posted a 65.3% jump in pre-tax profits to £11.9m.
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