"Strong fundamentals" see revenue growth for Ocado Retail amid COVID-19 outbreak

Ocado Group and Marks & Spencer’s joint venture Ocado Retail has reported a growth in retail revenue in its latest trading statement.

In the 13 weeks up to March 1, Ocado Retail saw a revenue growth of 10.3 per cent, with an increase in average order size, which the firm has attributed to the rise in online shopping as a result of the coronavirus outbreak.

The firm has also removed the need for customers to register in order to shop on its website, and implemented an online queuing system to ensure fair distribution of stock.

Melanie Smith, Ocado Retail’s chief executive officer, commented: “We have reported continuing growth at Ocado Retail with sales up 10.3 per cent over the quarter.

“The impact of higher basket values and order demand, amid growing public concern over the Coronavirus, was limited in the quarter, although this has since picked up significantly and growth in the second quarter is so far double that of the first quarter. We expect the impact of forward buying, however, to unwind at some point.

“However coronavirus unfolds, what is clear is that the fundamentals at Ocado Retail are strong, illustrated by double digit increases in customer orders, driven by consistent execution, which deliver a best-in-market customer experience.”