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LONDON, Sept 17 (Reuters) - British online supermarket and
technology company Ocado reported an acceleration in
retail sales growth in its latest quarter, helped by additional
capacity from its fourth automated warehouse.
The third quarter results were the first since Ocado and
Marks & Spencer completed their 1.5 billion pound joint
venture deal in August to create Ocado Retail.
For the 13 weeks to Sept. 1, its fiscal third quarter, Ocado
Retail's revenue rose 11.4% to 386.3 million pounds. That
compares with Ocado's first half growth of 9.7% and guidance of
10-15% for the second half.
Average orders per week rose 12.1% to 314,000 as more slots
became available, though average order size fell 0.8% to 105.42
pounds, reflecting a slightly higher frequency of purchase.
In February Ocado warned retail sales growth would be dented
until it increased capacity elsewhere after a fire devastated
its flagship robotic warehouse in Andover, southern England.
That extra capacity was secured through a deal with
Morrisons, Britain's No. 4 supermarket group, in May,
giving Ocado sole use of its fourth, and newest, robotic
warehouse in Erith, southeast London.
"These first set of results from the joint venture between
Ocado Group and M&S show the resilience of Ocado following the
Andover fire and the momentum the business now has," said
Melanie Smith, Ocado Retail's CEO.
The Ocado Retail joint venture will provide M&S with a
home-delivery service by September 2020.
Shares in Ocado, up 48% over the last year, closed Monday at
1,349.5 pence, valuing the business at 9.5 billion pounds.
While Ocado's retail business holds just a 1.4% share of
Britain's grocery market, its warehouse technology has powered
its valuation.
The group has technology deals with eight major retailers,
including U.S. group Kroger and France's Casino
.
(Reporting by James Davey, Editing by Paul Sandle)
Ocado (OCDO)
Marks & Spencer (MKS)