Ocado has declared it is “on track to restore sales momentum” as revenue and customer numbers continue to climb, despite shoppers continuing to buy less.
The online grocer – which posted a pre-tax loss of £501m in 2022 – reported retail sales of £583.7 for the 13-week period to 26 February 2023, up 3.4% compared to Q1 last year.
The size of the average shopping basket dropped by 7.5% (to 45 items) but this loss in revenue was offset by inflation and the resulting 8.3% increase in average selling price. The frequency of orders also continued to normalise in a return to pre-Covid levels, with the average number placed each week rising by 3.6% year-on-year.
The number of active customers reached 951,000, up 13.8% year-on-year as the online grocer continues to attract new customers thanks to its ongoing investment in value and improved customer service.
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Ocado Retail CEO Hannah Gibson, said the business continued to attract more customers by “investing in great value” for customers, particularly the new Ocado Price Promise and “providing unbeatable choice and service”.
“This means more perfect orders that are on time and in full, with deliveries back to the kitchen table,” she continued.
“We are also championing smaller suppliers and creating more of the M&S magic for customers by offering more of the products they love.”
Describing the current trading environment as “challenging”, Gibson said Ocado expects to build momentum through the second half of the year, improving its proposition, growing its customer base, and moving away from “Covid shopping behaviours”.
“This solid 2023 performance will enable us to return to sales growth and profitability.”
Profit guidance for the year remains unchanged, with revenue expected to show mid-single digit growth improving during the year.
