Ocado has reported a cut back in customer spending as the ongoing cost-of-living crisis intensifies.
As a result, the average basket that customers checked out reduced by 6% to £116 in the 13 weeks to the end of August, and have decreased even more rapidly since.
The online-only grocer expects stronger growth in the fourth quarter after a record number of new customers.
Ocado has seen 2.7% revenue growth for the 13 weeks to 28 August, up £14 million compared with the same period last year.
Its average orders per week has also increased by 10.7% to 374,000 as it reports a record number of new customers that are now shopping at the online-only supermarket, with active customer numbers seeing a 23% rise year-on-year to 946,000.
As its selling price has risen by 5% year-on-year, in looking to provide its shoppers with better value for money, Ocado has grown its own-label range adding a further 75 items to its 750 entry level priced products.
It says the M&S own-label range continues to make up 30% of a customers basket.
“We remain focused on providing Ocado Retail customers with the best possible value to help them navigate the cost of living crisis, and are encouraged by the positive underlying trends in the business which underline the value of Ocado’s differentiated proposition to customers,” Ocado Retail chairman, Tim Steiner said.
“Our online grocery model, which creates efficiency through advanced technology, offers customers a combination of competitive prices, the widest ranges, and industry-leading service.”
He added: “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.”
This news comes as Ocado has announced its new CEO, Hannah Gibson, who is taking over the helm from Mel Smith, who announced she would step down in July.
