11th Sep 2014 06:52
LONDON (Alliance News) - Ocado Group PLC Thursday sounded a note of caution on the UK retail environment as it posted a rise in sales and average orders per week for the third quarter, but said its average order size had shrunk during the period.
The FTSE 250 grocery-delivery company said group sales in the 12 weeks to August 10 were up 23% to GBP231.9 million, against GBP189.2 million a year earlier. Retail sales in the period were up 16% to GBP218.5 million against GBP189.2 million last year.
Average orders per week increased by 17% to 163,000, against 139,000 last year, but average order size was down by 1.7% to GBP111.64 against GBP113.54 in the corresponding period in 2013.
In the period, the group opened its Sizzle.co.uk specialist kitchen and dining shop. It said its existing platform business with Wm Morrisons Supermarkets PLC continues to scale with demand and said the development work on its modular logistics solution, re-platforming, and further enhancements of its technology are progressing well.
The company said its trading momentum was solid in the period, but Chief Executive Tim Steiner said the retail environment at the moment was "challenging", owing to the "increased level of promotional activity and price reductions across the industry".
He said the company was "pleased with the continued steady growth in our business despite the increasingly competitive nature of the market" and said its performance in the quarter "further demonstrates the ongoing shift to online grocery shopping".
"Due to the strength of our offer, we expect to continue growing sales broadly in line with, or slightly ahead of, the online grocery market," Steiner said.
By Sam Unsted; [email protected]; @SamUAtAlliance
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