Ocado Retail, a joint venture between Ocado Group plc and Marks & Spencer Group plc, has released its trading statement for the 13 weeks ending 3rd March 2024. The report highlights a robust performance, with a notable 8.1% year-on-year growth in total items, driving a 10.6% increase in Q1 Retail revenue to £645.3 million. The online market share also rose to 13.5%, reflecting a 0.7% increase over the year. The company's active customer base grew by 6.4% to 1.02 million, with an average of 414,000 orders per week, marking an 8.4% increase compared to Q1 2023.
The average basket value saw a 2.1% increase, while the average selling price grew by just 2.2%, significantly below the market, leading to improvements in customer value perception. Hannah Gibson, Ocado Retail's Chief Executive Officer, expressed satisfaction with the company's performance, stating, "We have made a strong start to the year, building on the momentum we established in 2023 through the progress of our Perfect Execution programme."
Gibson also emphasized the company's focus on enriching its product range, enhancing slot and product availability, and lowering prices, which has resonated well with customers, leading to strong volume growth. The company's guidance for the year remains unchanged, with a mid-high single digits % growth in revenue and an underlying EBITDA margin of approximately 2.5%.
Ocado Retail, established in 2000, is a leading online retailer in the UK, covering over 82% of households. The company's careful packing and delivery process, along with its award-winning mobile apps and thoughtful service features, have contributed to its success. The figures presented in the trading statement are unaudited and a copy of the update is available on the Ocado Group and Marks & Spencer Group websites.