Ocado has announced first quarter sales that have slightly surpassed the estimates of analysts. The UK’s largest online only food retailer saw revenue rise 15% £252m, just two short months after the company recorded the first profit in its 15 year history. In a statement yesterday, Ocado indicated that it intends to come out on top in an increasingly competitive food retail market.
“We remain committed to improving the quality of the proposition to customers, which we believe will support further growth,” said CEO Tim Steiner. “Notwithstanding the uncertainty that remains in the marketplace, we expect to continue growing slightly ahead of the online grocery market.”
Steiner, an ex-Goldman Sachs banker previously outlined that booking profits was not a cause for celebration, and that long-term shareholder value is the primary focus, rather than short-term profits.
“Increasingly, it feels like Ocado is starting to walk the walk,” comments Phil Dorrell, Director of Retail Consultants at Retail Remedy. “Ocado is proving not just a successful online grocer but a powerful IT and Operations developer for other retailers. We certainly wouldn’t rule out other large scale collaborations in the future.”
He continues, “Growth continues to be solid in a brutally competitive market. The reason is a service level and quality kudos that other grocers often miss.
Tim Steiner has played a long hand and is only now getting the return he always dreamed of. The current growth trajectory is very solid and he must be looking at other markets as the UK demography reaches its natural limit.”