1. News
September 13, 2022

Ocado Retail posts 2.7% sales growth in third quarter of FY22

The retailer’s average basket value fell by 6% to £116 during the quarter.

Ocado Retail, a joint venture of Ocado Group and Marks & Spencer, has recorded £532m ($614m) in sales for the third quarter (Q3) of fiscal 2022 (FY22), up by 2.7% from the same quarter of last year.

In the three months to 28 August, Ocado served record numbers of new customers, with its active customer numbers rising by 23% year-on-year to 946,000.

The company’s average orders per week (OPW) increased by 10.7% to 374,000 from 338,000 in Q3 2021.

Ocado’s average basket dropped by 6% to £116 during the quarter, with a greater decline experienced later in the period during the peak summer holiday season.

Having opened four customer fulfilment centres since the beginning of last year, Ocado expects its total OPW capacity to be around 600,000.

For the fourth quarter (Q4) of FY22, the company expects a mid-single digit sales growth.

Due to an acceleration in trading down and smaller baskets, especially over the last few weeks, Ocado expects a slight decline in sales for the full year.

Ocado Retail chairman Tim Steiner said: “As we have seen in Q3, customer numbers are sharply up as consumers either switch from other providers or try online grocery for the first time; underlying productivity in fulfilment and the last mile continues to improve; and the new CEO of Ocado Retail, Hannah Gibson, brings fresh vision and energy to the business.

“As consumer spending stabilises, we expect Ocado Retail will again deliver attractive and accelerating growth in sales and a strong recovery in profitability.

“For all these reasons, we are optimistic for the future even while recognising the challenges that higher energy bills and other inflationary pressures are creating for our customers today.”

In June this year, Ocado revealed plans to raise £575m through a share placing to fuel its expansion.