Ocado shares have surged by over 10% following the firm’s revised sales outlook. This comes in the wake of a strong performance from the Ocado Retail joint venture with Marks & Spencer.
The company reported a 15% revenue growth in the 13 weeks to 1 September 2024, marking a significant boost in sales and customer numbers.
Ocado Retail, a joint venture between Ocado Group and Marks & Spencer, has demonstrated a robust revenue increase of 15% for the quarter ending on 1 September 2024. The company’s revenues climbed to £658 million from £569 million in the same period the previous year. This growth is attributed to a rise in sales volumes and an increase in active customer numbers.
The number of active customers on the Ocado platform exceeded the one million mark, reflecting a 10% growth from last year’s 961,000.
Grocery inflation in the UK stood at 2%, which further contextualises the significance of Ocado’s increased sales volume.
Gibson highlighted the momentum seen in increasing customer numbers and interactions, improved service quality, and better value offerings. She emphasised the extensive range of products, including more M&S food and convenient delivery options.
Ocado’s perfect order rate has seen further enhancements, ensuring customers receive accurate and timely deliveries, fostering trust and repeat business.
The company continues to refine its offerings and operational efficiencies, promising more advancements and benefits for its customer base.
This positive market reaction underscores investors’ confidence in the company’s strategic direction and growth potential.
Ocado’s partnership with Marks & Spencer has proven fruitful, driving substantial revenue growth and customer acquisition.
The company’s focus on value, choice, and service quality has positioned it well for continued success in a competitive market.
