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Ocado celebrates record Christmas sales as customer numbers rise

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Ocado sales rise as customer numbers rise to 1.1 million

Ocado reported record sales during the crucial Christmas trading period as the online grocer’s customer numbers surpassed one million.

Revenue soared 17.5 percent year-on-year to £715.8 million during the fourth quarter of 2024, as order volumes on Ocado.com rose 17 percent.

Ocado highlighted joint venture partner Marks and Spencer’s party food selection, including halloumi with hot honey and pigs in blankets, as a major driver of sales.

The number of active customers soared 12.1 percent to 1.1 million, while average orders per week increased 16.9 percent.

Average basket value remained stable, rising 0.2 per cent to £120.85, while basket size by number of items rose 0.1 per cent to 43.9.

Hannah Gibson, chief executive of Ocado Retail, said: “We have achieved this growth by focusing on customer service and delivering unbeatable choice, unrivaled service and reassuringly good value for the homes and families we serve.”

“We have made a number of significant improvements, including making sure customers can buy all their favorite M&S products, ensuring our service is near perfect, changing our perceptions of value as customers realize how much we have changed in the price and help new customers discover Ocado.’

Ocado sales rise as customer numbers rise to 1.1 million

Ocado added that it expects to maintain “market-leading sales growth and volume momentum” in 2025, while making “further progress in driving operational efficiency and scale leverage, continuing our journey towards a margin.” “Adjusted EBITDA in the high-mid single digits.” -term’.

It also highlighted progress in the efficiency of its customer fulfillment centers (CFCs), which “improved throughout the year.”

The Tts network exceeded design capacity over the Christmas period, “demonstrating the growth potential of our CFCs,” Ocado said.

ocado actions it soared 12.2 per cent to 303 pence in early trading, although it remains less than half its value 12 months ago and is down almost 80 per cent in the last five years.

Is a revival due to Ocado shares?

Mark Crouch, market analyst at eToro, said: “After a miserable few years for shareholders, it will take more to regain the dizzying heights of 2020, as the cold, hard truth is that, despite all the prospects and potential, Ocado has not yet offered consistent profitability.

‘While profitability could set in quickly, there are growing murmurs that perhaps Marks & Spencer, which has a trading partnership with Ocado and has shown a surprising turnaround in the past two years, should have more control to increase those odds.

“If Ocado shares don’t start performing soon, shareholders could start demanding it too.”

Chris Beckett, head of equity research at Quilter Cheviot, added that a “significant rise” in Ocado shares will require the group to secure more international orders for its warehouse and logistics technology.

He said: ‘These partnerships, which form the backbone of its global expansion strategy, are essential to diversify revenue streams and demonstrate scalability.

‘Success on this front could act as a catalyst to revalue its market valuation.

“At the same time, capacity constraints during peak periods, such as Christmas, underline the need for greater infrastructure investment over time, potentially in the form of new warehouses, to meet growing demand and sustain its growth trajectory.” .

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