(Adds detail)
LONDON, May 6 (Reuters) - British online supermarket and
technology company Ocado said on Wednesday retail
revenue soared 40.4% year-on-year in its second quarter so far
as shoppers in coronavirus lockdown sought deliveries to avoid
venturing out.
That compared to growth of 10.3% in its first quarter to
March 1.
Britain has been on lockdown since March 23.
Ocado said it adapted its platform and ramped up capacity
rapidly in order to meet unprecedented demand and was now
delivering significantly more groceries to UK households than
ever before.
It noted that the number of items per customer basket
appeared to have passed its peak but remained high, as more
normal shopping behaviour had returned, and the share of fresh
and chilled products in the mix, relative to ambient store
cupboard items, was also returning to normal.
Ocado said it expected the long-term shift towards online
grocery to accelerate post the COVID-19 crisis.
But it highlighted uncertainties about the length of the
crisis, customer reaction immediately afterwards and its
long-term impact on customers' disposable incomes. So it said it
had suspended its guidance for retail revenue for full year 2020
until it could accurately forecast likely outcomes.
Ocado's retail business is a joint venture between Ocado
Group and Marks & Spencer. Ocado's supply deal with
Waitrose will finish at the end of August, when it will be
replaced with M&S.
(Reporting by James Davey, Editing by Paul Sandle)
Marks & Spencer (MKS)
Ocado (OCDO)
