Ocado´s third quarter update out today, which covers the 13 weeks until August 30th, was very strong as the online grocery retailer has seen revenue increase by 52% to £587.3m. This comes as the company continued to benefit from lockdown as people remained at home due to the pandemic. Quite remarkably, the average number of orders per week rose 9.6% to 345,000.
Russell Pointon, Director, Consumer at Edison Group, said: “Clearly, the new joint ventured with Marks & Spencer has started on a positive note as the retailer announced customers are now buying more M&S own-branded products from Ocado than they bought Waitrose own-brand.
“Nevertheless, the growth rate is likely to slow as people are encouraged to go back to work and eat out more, therefore less food will be likely consumed at home. It is also worth highlighting that although the retailer´s CFC´s (distribution centres) have managed to navigate the extra demand, they are running at a high level of capacity.
“Going forward, investors will be keeping a close eye on the company’s level of demand and if it can be sustained, particularly following the extensive advertising campaign ahead of the launch.”
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