Ocado Retail, a joint venture between Ocado Group and Marks & Spencer, has released its Q3 trading statement for the 13 weeks ending August 27, 2023. The company reported a 7.2% growth in retail revenue compared to the same quarter last year, with a return to positive volume growth in the last month of the quarter. Average orders per week grew by 1.9% year-on-year, and the number of active customers increased by 1.5%. The average basket value increased by 4.2%, while the average selling price increased by 8.4%. The company's FY23 guidance remains unchanged, with mid-single digit revenue growth and full-year profitability expected.
Hannah Gibson, CEO of Ocado Retail, stated that the company has seen great momentum in the business, with revenue growing faster in Q3 than in H1. She also highlighted the opening of a new robotic customer fulfillment center in Luton, which will enable the company to double productivity compared to its first-generation Hatfield site. Gibson emphasized the collaboration with Marks & Spencer, with hundreds of new M&S lines set to launch in the autumn. The company aims to bring lower prices, more choice, and greater convenience to its customers.
There is no change to the guidance issued in February, which includes mid-single digit revenue growth and marginally positive EBITDA. The company expects a positive EBITDA result in the second half of the year, supported by a return to volume growth.
Ocado Retail is a leading online retailer in the UK, established in 2000. It is a joint venture between Ocado Group and Marks & Spencer. The company delivers a wide range of products to customers using market-leading software and technology.