Ocado Group PLC - Trading Statement
Continued strong growth in retail sales; switchover to M&S products marks exciting new phase for JV
● Retail Revenue grew 52% as channel shift to online grocery in
● Retail sales grew faster compared to Q2 as demand remained high versus a seasonally softer quarter in Q3 2019
● Average order size continues to normalise from COVID-related peaks to
● Orders per week have increased thanks to a combination of strong demand, a phased reopening of the website to new customers, and a normalising of shopping patterns
● Customers have responded positively to the switchover to M&S products on the 1st of September, with demand for the new range driving both an increase in the number of products in customer baskets and strong forward demand
● The weighting of M&S products in the average Ocado basket is higher than
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13 weeks to
13 weeks to
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Average orders per week3
"These are transformational times for
Our model brings customers the very best customer experience, supported by sustainable economics and respect for the environment and the communities we serve. Ocado's innovative technology solution provides the best service metrics for any online grocery service in the
Our aim is to continue to set the bar as we begin again to welcome new customers who are seeing the benefits of online shopping in ever greater numbers and we remain focused and on track to increase capacity by 40% through to 2021. Finally, I would like to thank my colleagues for their hard work and dedication in making this happen, even under the most challenging circumstances. I am proud of you all".
Update on switchover to M&S products on Ocado.com
Following the go-live of M&S products on Ocado.com in the first week of August, customers received their first deliveries from this new range on the 1st of September.
The initial range of 4,400 food products replaces c4,000
M&S's great value is highlighted through its Remarksable range which includes M&S Remarksable Best of Both Medium Sliced Bread Loaf for 65p and M&S Remarksable Select Farms British Whole Milk for 85p. M&S expects to add around 800 more products to the range in the coming months including the launch of M&S's Christmas ranges, Entertain by Ocado and further new product development.
In addition, Ocado.com now features around 700 M&S Home & Lifestyle product lines, further enriching the hypermarket offer for customers with quality M&S products in categories such as toiletries, baby, kitchen, dining and household.
Excitement around the launch of M&S products has increased the average basket by around 5 items and is driving strong forward demand including our biggest ever forward order day, on the day of launch. 98% of customers are already shopping M&S.
Outlook for the remainder of the year
While uncertainties remain over the scale, and duration, of the ongoing impact of social distancing restrictions in the
Ocado Group, on behalf of the joint-venture, will be hosting an analyst conference call at
Online supermarket Ocado.com was established in 2000 and is one of
1. Average order size refers to results of Ocado.com and Fetch.
2. Retail revenue comprises revenues from Ocado.com, Fetch, and Ocado Zoom. Retail revenue in the 13 weeks to 31st May was
3. Average orders per week refers to results of Ocado.com and Fetch.
4. Growth percentage calculated on a rounded basis.
5. The figures used in this announcement are unaudited.
Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and assumptions and are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from any expected future events or results expressed or implied in these forward-looking statements. Persons receiving this announcement should not place undue reliance on forward-looking statements. Unless otherwise required by applicable law, regulation or accounting standard, Ocado does not undertake to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
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