Ocado Retail, a joint venture between Ocado Group and Marks & Spencer, has announced a 7% increase in retail revenue in the fiscal year 2023 (FY23), reaching £2.35bn ($2.99bn).
This growth comes despite a slight decrease in item volumes and is bolstered by a rise in average orders per week and basket value on Ocado.com.
Go deeper with GlobalData
For the 52 weeks to 26 November 2023, the e-commerce platform experienced a 0.9% drop in item volumes, attributed to the post-pandemic shift and the ongoing cost of living crisis.
However, average orders per week saw a 4% year-on-year (YoY) increase.
The average basket value on Ocado.com rose by 2.7% in FY23, although basket size decreased by 4.5% to 44 items per order.
The company’s average selling price (ASP) for the fiscal year grew 7.9% against that of the previous year.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIn the fourth quarter (Q4) of FY23, Ocado Retail’s revenue grew by 10.9% to £609.4m compared to the same period of FY22.
Item volumes increased by 4.8% YoY in Q4 FY23, and average orders per week rose to 407,000, a 6.3% increase from the same quarter of the previous year.
The number of active customers reached 998,000 in Q4 FY23, increasing by 5.9% from the previous year.
Its average basket value also rose by 3.8%, with basket size remaining stable at 44 items per order quarter-on-quarter.
The retailer’s ASP increased 5.4% YoY over the quarter.
Ocado Retail chief executive officer Hannah Gibson stated: “We made significant progress in 2023. We have focused first and foremost on being a great shopkeeper, improving our unbeatable range, great value and unrivalled experience – all underpinned by improved cost efficiencies.
“Our Perfect Execution programme set a high bar for our performance, and we are pleased to have finished the year with strong momentum.”
In fiscal 2024, Ocado Retail expects revenue growth to be in mid-to-high single digits, affected by lower growth in average selling price.
