(Alliance News) - FTSE 100 firm Ocado Group PLC on Thursday reported a jump in revenue in its retail arm, which it operates in a joint venture with Marks & Spencer Group PLC.
In the 13 weeks to December 1, Ocado Retail revenue was 11% higher at GBP429.1 million from GBP387.2 million a year ago.
Average order size was stable at GBP104.9 but average weekly orders climbed 10% to 350,000 from 317,000, Ocado explained.
Ocado Retail Chief Executive Melanie Smith said: "I am pleased to report further progress in bringing the Ocado offer to an ever increasing number of customers in the UK. Another strong quarter for customer orders means that we remain the fastest growing grocer in the country. The collaboration between M&S and Ocado Group is working well."
Ocado announced in August that it would sell 50% of its retail business to M&S. By September 1, 2020, Ocado will stock over 6,500 M&S grocery products and terminate its current arrangement with John Lewis & Partners-owned grocer Waitrose.
Smith said: "We have made good progress preparing for switchover date in September 2020, when the M&S food range will be available online for the first time. We are also planning fresh capacity, to offer customers more availability, and have new customer fulfilment facilities in Bristol and Purfleet, and a rebuilt state of the art facility at Andover, on the way."
Ocado also hailed M&S's product line, which following a range review was found to have the same price or lower, and "of the same quality or better", as a majority of items stocked by Waitrose.
Waitrose currently stocks 4,000 of Ocado Retail's 55,000 product range.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
Ocado (OCDO)
Marks & Spencer (MKS)
