(Alliance News) - Ocado Group PLC on Wednesday said retail sales so far in the second quarter have jumped by 40% as grocery demand surges due to the Covid-19 pandemic.
Ahead of its annual general meeting, the FTSE 100 grocer said retail revenue in its first quarter ended early March was 10% higher year-on-year.
So far in its second quarter, sales have climbed 40% annually. Consumers in the UK, during the early stages of the virus crisis, stockpiled on goods in fear of shortages further down the line.
Ocado said demand ratcheted up "almost overnight" due to Covid-19.
"The number of items per basket appears to have passed its peak but remains high, as more normal shopping behaviours have returned, and the share of fresh and chilled products in the mix, relative to ambient, is also returning to normal," the company said.
It noted it has "ramped up" capacity at its fulfilment centres as a result of the increased demand.
It also added it gave its frontline staff a 10% pay bonus.
"Although we expect the long-term shift towards on-line grocery to accelerate post-crisis, there remain many uncertainties about the length of the crisis, customer reaction immediately post and its long term impact on customers' disposable incomes, and so we have suspended our guidance for retail revenue for financial 2020 until we can accurately forecast likely outcomes," Ocado said.
The company also said its first international fulfilment centre went live during the first quarter.
A warehouse in Fleury-Merogis, southern Paris was launched alongside French grocer Casino Guichard Perrachon SA, or Groupe Casino.
A second with Canadian retailer Sobeys Inc undertook a test launch on April 27.
"The fact that these facilities have been delivered on time in the middle of this global health crisis demonstrates the ability of the business to execute well even under the most challenging circumstances," the company said.
Ocado shares were 3.5% higher at 1,737.50 pence each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Ocado (OCDO)