Ocado revenue up 11.2% despite impact of warehouse fire
Ocado has posted 11.2% growth in first quarter retail revenue, despite the impact of a fire at its distribution centre in Andover.
While reporting on the three months to 3 March, the online grocery retailer said the fire hit sales by 1.2%.
Sales reached £404 million in the period as the retailer’s average orders per week saw strong underlying growth of 11.3%. Meanwhile, its average order size was 0.2% down on the same quarter in the previous year.
Tim Steiner, Ocado’s chief executive, said: “Our first quarter was characterised by continued strong underlying growth in Ocado Retail but also the initial impact of the fire at our CFC in Andover on our headline numbers.
“The fire has been a setback, but it will be only a temporary one. Over the last few weeks, our teams have been working hard to minimise any disruption to our customers and we will build a state-of-the-art replacement facility that reflects all the innovations and improvements we have made since Andover opened in November 2016.”
During the period, Ocado signed a joint venture agreement with Marks & Spencer to enable the food, fashion and homewares retailer to offer an online food home delivery service.
Steiner added: “With the joint venture signed with M&S at the end of February, Ocado Retail has never been in a stronger position to lead channel shift while constantly setting the bar for excellence in online grocery in the UK. We are looking forward to the future with excitement and determination.”
