Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Ocado sales rise as investment in robotic warehouses expands online supermarket's reach

Shares in the high-tech grocer up 126 per cent in a year

Ben Chapman
Thursday 13 December 2018 11:35 GMT
Comments
Ocado is trialing electric delivery cars

Ocado posted sales growth of 12 per cent in the final quarter as its investment in new robotic warehouses grew capacity.

Orders at the online supermarket grew 13.1 per cent to 320,000 per week in the three months to the start of December, lifting retail revenues to £390.7m.

However, the average order size shrunk slightly to £104.91. Shares in the online supermarket rose 3 per cent after the results announcement on Thursday and are now up 126 per cent over the last year.

Two new state-of-the-art facilities in Andover and Erith have enabled Ocado to take on more UK customers while four new overseas contracts, including one with US retailer Kroger, have established its international presence.

The group – which delivers food for Waitrose and Morrisons as well as own-brand goods - made a loss last year as it invested in a new technology platform, including robots that pick and pack deliveries at its 18-acre site in Hampshire.

After a transformative year, Ocado is now valued at £5.4bn and seen as a leader in the online grocery market. Chief executive Tim Steiner said things had “only just begun” for the company which entered the FTSE 100 for the first time in June.

Emma-Lou Montgomery, associate director from Fidelity Personal Investing said: “Having already been dubbed the Microsoft of the retail sector, which was one hell of a moniker - even before Microsoft’s rise to the top of the pack this year - Ocado’s star would appear to be on the ascent.

“CEO Tim Steiner’s comment on 2018 having been a transformative year sets it apart in a sector that has done anything but shine.

“A ‘good finish to the year’ was its typically British, understated message to investors, but there’s no doubt that all eyes will be on Ocado to see what it does next in 2019.”

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in