Ocado update not to market’s taste

The price of shares in FTSE 100 grocery delivery firm Ocado (LON:OCDO) slipped 2.93% to 2,022p (as of 11:30 GMT) after it posted an update for its retail partnership with Marks & Spencer. Revenues for the 13 weeks ended 28th February were up by 40% with average orders per week improving by 2.5%.

Ocado Group CEO Tim Steiner commented: “Over the last twelve months, there has been a dramatic and permanent shift towards online grocery shopping around the world. Millions of customers have experienced online grocery shopping through the pandemic and many of them will not be going back to bricks and mortar. As we progress towards a new normal for grocery retail, and the focus for the industry shifts from meeting unprecedented demand to winning in a large and growing online channel, the need for a fulfilment solution that both delights a more knowledgeable customer, and enables profitable, sustainable growth, has never been more critical.

“This is the solution that Ocado’s partners are now rolling out in many countries across the world. The first international partners to go live, Sobeys and Groupe Casino, have reported a very encouraging customer response and we look forward to the official opening of the first Customer Fulfilment Centres for our US partner Kroger in the coming weeks.

“Ocado Retail, of course, is the most advanced in demonstrating the power of the solution. It has proven that the model consistently delivers the best online customer experience in grocery with leading economics. We believe that the prospects for Ocado Retail, as well as our other Solutions partners, are very promising“.