Ocado Retail, a joint venture between Ocado Group and Marks & Spencer, has announced a 7% increase in retail revenue in the fiscal year 2023 (FY23), reaching £2.35bn ($2.99bn).
This growth comes despite a slight decrease in item volumes and is bolstered by a rise in average orders per week and basket value on Ocado.com.
For the 52 weeks to 26 November 2023, the e-commerce platform experienced a 0.9% drop in item volumes, attributed to the post-pandemic shift and the ongoing cost of living crisis.
However, average orders per week saw a 4% year-on-year (YoY) increase.
The average basket value on Ocado.com rose by 2.7% in FY23, although basket size decreased by 4.5% to 44 items per order.
The company’s average selling price (ASP) for the fiscal year grew 7.9% against that of the previous year.
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In the fourth quarter (Q4) of FY23, Ocado Retail’s revenue grew by 10.9% to £609.4m compared to the same period of FY22.
Item volumes increased by 4.8% YoY in Q4 FY23, and average orders per week rose to 407,000, a 6.3% increase from the same quarter of the previous year.
The number of active customers reached 998,000 in Q4 FY23, increasing by 5.9% from the previous year.
Its average basket value also rose by 3.8%, with basket size remaining stable at 44 items per order quarter-on-quarter.
The retailer’s ASP increased 5.4% YoY over the quarter.
Ocado Retail chief executive officer Hannah Gibson stated: “We made significant progress in 2023. We have focused first and foremost on being a great shopkeeper, improving our unbeatable range, great value and unrivalled experience – all underpinned by improved cost efficiencies.
“Our Perfect Execution programme set a high bar for our performance, and we are pleased to have finished the year with strong momentum.”
In fiscal 2024, Ocado Retail expects revenue growth to be in mid-to-high single digits, affected by lower growth in average selling price.