Ocado revenue up 11.2% despite warehouse blaze

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Ocado
// Ocado has had a revenue increase of 11.2% to £404m in the 13 weeks to March 3
// Average orders increased by 11.3%
// Revenue slowed down by Andover warehouse fire

Ocado has reported a revenue increase of 11.2 per cent to £404 million in its first quarter, despite fears a warehouse fire would’ve led to major ramifications.

In the 13 weeks to March 3, the online grocer recorded an underlying increase of 11.3 per cent in average orders per week to 314,000.

However, the average order size was marginally down by 0.2 per cent to £110.24.

The retailer also said its 11.2 per cent revenue growth was slowed down by the fire which took place at its Andover warehouse in early February, where sales at the time were dented by 1.2 per cent.

“Our first quarter was characterised by continued strong underlying growth in Ocado Retail but also the initial impact of the fire at our CFC in Andover on our headline numbers,” Ocado chief executive Tim Steiner said.

“The fire has been a setback, but it will be only a temporary one.

“Over the last few weeks, our teams have been working hard to minimise any disruption to our customers and we will build a state-of-the-art replacement facility that reflects all the innovations and improvements we have made since Andover opened in November 2016.”

The quarter also saw Ocado and Marks & Spencer announce a joint venture, which will come into effect in the latter half of 2020..

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