Ocado Retail reports a significant sales increase in its latest quarter, attributing success to strategic price reductions and an enhanced product range, even as it navigates a payment dispute with partner Marks & Spencer.
Ocado Retail reported a notable 10.6% increase in sales, reaching £645.3 million for the 13-week period ending March 2. This achievement is attributed to strategies aimed at enticing customers back, including price reductions on over 1,700 items and an expanded range of products. Despite experiencing a dip in basket sizes, a consequence of changing consumer habits post-pandemic, the online grocer has maintained its revenue guidance for the year, anticipating a “mid-high single digit” percentage increase in sales.
The company has also seen a 6.4% rise in its active customer base, now surpassing 1.02 million. This growth reflects the company’s focus on improving customer satisfaction and fostering volume growth through competitive pricing and diversifying its product offerings.
Amidst this progress, Ocado faces ongoing discussions with retail partner Marks & Spencer over an unresolved payment issue. Despite this challenge, Ocado’s CEO, Hannah Gibson, expressed optimism about reaching a negotiated settlement soon.
In summary, Ocado Retail’s recent performance showcases its capacity to attract and retain customers by enhancing value perception, despite facing market challenges and a potential dispute with its retail partner.
