Ocado Retail delivered a strong finish to its financial year, with sales growth accelerating in the fourth quarter as weekly orders reached a milestone of 500,000 for the first time.
The joint venture between Ocado Group and M&S saw retail revenue rise 17.5% to £715.8m in the 13 weeks to 1 December, versus growth of 15.5% in its previous quarter, as active customers rose 12.1% to 1.12m.
Volumes on Ocado.com were up 17% on last year at 271.6m items, while average basket value, selling prices and basket size also all rose on last year.
Average orders per week grew by 16.9% at 476k, hitting a peak of 500,000 at the end of November.
Ocado Retail CEO Hannah Gibson said: “We’ve achieved this growth by being laser focused on customer service and delivering unbeatable choice, unrivalled service and reassuringly good value to the households and families that we serve.
“We’ve made a series of significant improvements – including making sure customers can buy all their favourite M&S products, ensuring our service is near perfect, shifting our value perceptions as customers realise how much we’ve moved on price and helping new customers discover Ocado.”
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The joint venture also said it delivered its highest ever level of sales over the peak Christmas trading period but did not provide numbers.
Efficiency at its customer fulfilment centres (CFCs) improved throughout the year, with average units per hour (UPH) up 15% over Christmas.
Gibson continued: “2024 was a year of strong growth. In the fourth quarter, we accelerated sales again – reaching 500,000 orders per week for the first time, at the end of November.
“As we enter the next phase of our strategy, we are excited about the future of online grocery and our role in shaping it. Priorities for this year are raising the bar again in our leading customer proposition, making further progress on improving profitability and transitioning the business onto new technology platforms.”
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