Wednesday, April 24, 2019

Ocado posts solid growth for 2016


Ocado continues to fend off competition from the likes of AmazonFresh and increased delivery services from the Big 4 after it recorded a rise in full-year profits and sales.

The online grocer‘s full-year pre-tax profit increased 21.8 per cent to £14.5 million in the year ending November 27, 2016, while group revenue – which includes delivery charges and fees charged to Morrisons for its online partnership – went up by 14.8 per cent to £1.27 billion.

Ocado‘s active customer base also grew by almost 14 per cent, with growth in average orders now approaching 18 per cent.

The retailer welcomed the results and said it reflected robust trading in its core business, which chief executive Tim Steiner said was “testament to the strength of our customer proposition, market position and technology”.

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The online retailer has also commenced operations at its new customer fulfilment centre in Andover, which had the first installation of the company’s new proprietary technology.

“At the same time, we have made good progress in improving the efficiency and throughput of our existing operations, increasing our capacity from existing facilities by over 20,000 weekly orders,” Steiner said.

“These developments position us well for future growth, whilst improving our returns and enhancing the service we can offer our customers.

“In this ever-evolving retail environment, we look forward to further developing our capabilities through innovation, creating the next generation ecommerce capabilities that will ensure our offer remains compelling for both retail and OSP customers alike.”

Ocado said discussions with multiple international retailers regarding adoption of its “Smart Platform solution” technology were continuing.

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