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Online grocer Ocado has revealed it has reported a 52% surge in sales during the third quarter of the year, as it hailed the “successful switchover” to its M&S product range.
For the 13 week period ending 30 August 2020, Ocado Retail recorded revenues of £587.3m as it said sales grew faster compared to Q2 as the “channel shift to online grocery in UK continues”.
Following the go-live of M&S products on Ocado.com in the first week of August, the grocer said the “excitement” around the launch of M&S products increased the average basket by around five items and is driving “strong forward demand” including its biggest ever forward order day, on the day of launch.
It said 98% of its customers are already shopping for M&S products.
Looking ahead, Ocado said while “uncertainties” remain over the scale, and duration, of the ongoing impact of social distancing restrictions in the UK, the strong trading performance of Ocado Retail in the first three quarters of the year, combined with the impact of operational leverage in the retail business, suggest a full-year EBITDA result of at least £40m.
Melanie Smith, Ocado Retail CEO, said: “These are transformational times for Ocado Retail with M&S products now exclusively available online at Ocado.com. The successful switchover means that M&S products are available to buy in a weekly shop side by side with branded products for the first time.
“As a result, we can now offer customers more choice and better value than ever before, wider ranges than any traditional retailer, and thousands of products that are only available online through Ocado.com.”
She added: “Our aim is to continue to set the bar as we begin again to welcome new customers who are seeing the benefits of online shopping in ever greater numbers and we remain focused and on track to increase capacity by 40% through to 2021. Finally, I would like to thank my colleagues for their hard work and dedication in making this happen, even under the most challenging circumstances. I am proud of you all”.
