Following today’s release of Ocado’s figures for the 13 weeks ending 1st December 2024; Aliyah Siddika, Retail Analyst at GlobalData, a leading data and analytics company, offers her view: “Ocado Retail has delivered continued revenue growth throughout the year with greater choice and improved customer value perceptions, culminating in a strong finish to its financial year. In its fourth quarter ending 1 December, the online grocer reported a 17.5% increase in revenue to £715.8m, driven by growth in order volumes. The grocer’s active customer base grew 12.1% year-on-year to reach 1.1 million, and order frequency rose, with average orders per week increasing 16.9%. Trading this Christmas was record-breaking for the online retailer thanks to Marks & Spencer’s innovative seasonal items and an extensive choice of entertaining foods, including Paxton and Whitfield cheese. Ocado anticipates similar volume momentum in FY25, which will ultimately lead to yet unseen profits in the mid-term.
“Ocado’s larger product range, which now includes nearly the entire Marks & Spencer range, has attracted new customers and encouraged greater frequency of purchases. Ocado’s expansion of this range was influenced by Marks & Spencer’s growing popularity among customers for its innovative food products. Ocado Retail has also increased its range of smaller challenger brands to provide customers with more options. Ocado continues to diversify its offer outside of food and drink with a goal of becoming a one-stop shopping destination for customers; its recent partnership with Holland & Barrett to enhance its health and wellness offer has been part of this strategy.
“The online grocer’s focus on price cuts and technological advancements is enhancing customer perceptions of its offerings. Through initiatives such as ‘Big Price Drops’ and the ‘Ocado Price Promise’, Ocado Retail has successfully matched prices on 10,000 products with Tesco, improving its value proposition – value satisfaction increased 4.3ppt in the last financial year – and appealing to a broader customer base. Investments in technology, such as robotic arms in their automated Customer Fulfilment Centres, ensure accurate and timely order fulfillment, boosting customer satisfaction and loyalty. By addressing common concerns like product accuracy, substitutions, and freshness, Ocado Retail has positioned itself as a leader in the online grocery market.”
