Ocado Retail, a collaboration between Ocado Group and Marks & Spencer, has announced a 15.5% revenue increase to £658m in the third quarter (Q3) of fiscal 2024 (FY24), up from £569.6m in Q3 FY23.
During the quarter, the volume of total items sold also saw a substantial year-on-year increase of 15.4%, amounting to £249.9m compared to £216.5m in Q3 FY23.
The retailer experienced a 14.7% rise in average orders per week, with figures reaching 437,000 in Q3 FY24, up from 381,000 in the same quarter of the previous year.
Significant contributing to this performance were a growth in active customers, which climbed by 10.3% to 1.06m, and improved frequency due to better slot availability and overall proposition.
Despite a slight 0.4% decrease in the average selling price, which contrasts with the UK grocery inflation rate of 2%, the average basket value remained almost stable at £120.97 in Q3 FY24, compared to £120.72 in Q3 FY23.
The average basket size saw a marginal increase of 0.7%, with customers purchasing 44 items on average compared to 43.7 items in the same quarter of the previous year.
Ocado Retail CEO Hannah Gibson stated: "Our strategy remains focused on giving our customers unbeatable choice, unrivalled service and reassuringly good value. We’re seeing the momentum of this, with more customers shopping with us more often, getting even better service at better value.
“We know what our customers love, and we’re focused on our proposition every day. This includes our widest-ever choice including more M&S food, more convenience with better availability of delivery slots and products, further improving our high perfect order rate and better value for money through our Ocado Price Promise and our latest Big Price Drop.
“We’re pleased with the progress we’re making and excited about how much more there is to deliver.”
Following the strong performance in the first three quarters of the financial year, Ocado Retail has upgraded its full-year revenue guidance to low double-digit percentage growth, a revision from the previously anticipated mid-high single-digit percentage growth.
The company forecasts its adjusted earnings before interest, taxes, depreciation and amortisation margin for FY24 to be around 2.5%, excluding annual fees of £33m for its storage warehouse in Hatfield, Hertfordshire.
