(Alliance News) - Ocado Group PLC said Thursday its equal joint-venture with Marks & Spencer Group PLC has enjoyed a stellar start to 2021.
Shares in the online grocer were 2.1% lower in London on Thursday morning at 2,039.00 pence each, though they are up 38% over the past 12 months. M&S shares were marginally higher at 158.30p.
Ocado Retail, a joint venture between Ocado and M&S, said retail revenue grew 40% in the 13 weeks to February 28, reflecting strong demand for online grocery during the latest lockdown.
The average order size was GBP147 in the period, as a result of seasonal strength over the Christmas holiday and "a temporary reversal of the trend towards normalised shopping behaviour in response to further national lockdown measures in the UK".
Average orders rose 2.5% to 329,000 in the 13 weeks to February 28, 2021 from 321,000 in the 13 weeks to March 1, 2020, with retail revenue growing by 40% to GBP599.0 million from GBP428.8 million.
The online grocer said M&S products consistently accounted for over 25% of the average basket size.
Ocado Group Chief Executive Officer Tim Steiner said: "Over the last twelve months, there has been a dramatic and permanent shift towards online grocery shopping around the world. Millions of customers have experienced online grocery shopping through the pandemic and many of them will not be going back to bricks and mortar.
"As we progress towards a new normal for grocery retail, and the focus for the industry shifts from meeting unprecedented demand to winning in a large and growing online channel, the need for a fulfilment solution that both delights a more knowledgeable customer, and enables profitable, sustainable growth, has never been more critical."
Looking ahead, Ocado Retail expects positive revenue growth in the second quarter compared to the corresponding period last year as it continue to ramp up its "mini" customer fulfilment centre in Bristol and as restrictions remain in place in the UK.
It said will open two standard size CFCs in financial 2021, while 12 new "micro" sites are being sought, primarily in London. These are to support the roll-out of the Ocado Zoom immediacy concept, which offers deliveries within one hour of ordering, the company said.
By Paul McGowan; paulmcgowan@alliancenews.com
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