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Ocado announce pre-tax loss of £3.8m

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Internet supermarket Ocado has announced wider loses, despite seeing its sales grow.

Ocado have registered a pre-tax loss of £3.8m for the 24 weeks to 19 May, but increased its average orders per week by 13.4% to 139,000.

The retailer has been well-placed to benefit from the online shopping boom and enjoys a tie-up with Waitrose which has allowed it to implement a low price promise- with products on promotion now accounting for around 35% of sales.

The firm, who has its headquarters in Hertforshire, recently announced a £216m deal with Morrisons which will see the Bradford based supermarket use Ocado for logistical support. The deal will enable it to launch an online grocery service by January 2014. .

Ocado, who has 360,000 active customers, was founded in 2002 by three Goldman Sachs bankers and has yet to announce an annual pre-tax profit.

Matt Piner, research director at Conlumino, stated his concern at the loss and said: “Doubts still remain that it will ever achieve significant profitability as a standalone business.”

Despite the disappointing figures, Ocado maintains that it will continue to improve its infrastructure and look to new opportunities for growth.

Published on Tuesday 02 July by Editorial Assistant

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