Ocado is expected to report strong grocery sales, when it updates investors on tomorrow ( 17 January).

The online-only investors will be hoping to become the latest retailer to indicate that consumer spending over the key festive quarter was more “resilient” than many expected.

The grocers technology operations is also expected to show signs of positivity after recent licensing deal.

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The news comes as rivals Tesco and Sainsbury’s, alongside, Ocado’s retail partner Marks & Spencer reported strong growth in its Q4 results.

However, analysts have claimed there could be justification to be cautious after Ocado warned that shoppers were buying smaller baskets of items due to the ongoing cost-of-living crisis.

“In the third quarter the group’s average selling price rose 5% overall, but within that there was a 2% decline relating to the preference for value goods,” Hargreaves Lansdown equity analyst, Sophie Lund-Yates said.

“We expect this trend to have continued in the final quarter, and we’ll find out the extent of changing customer attitudes over the important festive season.”

AJ Bell investment director Russ Mould said: “Shares have since rallied, helped by the latest licensing deal for the Ocado Smart Platform, this time with South Korea’s Lotte Shopping, and shareholders will look for an update here and progress at the other licensing deals, in the US, France, Sweden, Canada and others.”