Currently possessing 1.4% of the UK grocery market share, Ocado’s objective is to use evermore advanced technology to provide consumers with the best possible shopping experience in terms of service, range and price.
Long term structural trends within the grocery industry seeing shorter, more efficient supply chains, online shopping and rapid delivery becoming increasingly popular, offer positive long term outlooks for the innovative retailer.
Ocado’s third quarter trading statement, published Tuesday 19th September, boasted impressive 13.1% increase in retail sales, and average order increase of 16% to over 250,000 baskets per week. Overall, Ocado’s total revenue jumped 14.3%; helped by the retailers ‘smart platform’ technology service solutions and partnership deals. This was hailed a ‘solid performance,’ even despite the weak pound and political uncertainty fuelling heavy inflation within the grocery sector.
Despite these positive messages, following the publication of its third quarter review, share value in Ocado dropped 6%. This was attributed to temporary increases in short term costs as investment in a new distribution centre dampened Ocado’s balance sheet.