UK online retailer Ocado insisted that it has overcome warehousing issues as it delivered a jump in first-quarter sales this morning (5 March).
In December, Ocado said that its fourth-quarter profitability was was hit by capacity constraints at its Hatfield distribution centre.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
However, the grocery group today insisted that it has overcome the majority of issues at the site, driving up the number of orders filled each week by 13.4% in the three months to 19 February. The highest number of orders delivered in a week reached 134,000, up from 124,000 in the same period last year, the group added.
Gross sales increased by 10.9% to GBP162.1m (US$256.3m) in the period, the company said.
However, sales gains have slowed since the bumper 24% growth the firm reported over the Christmas period. During the first quarter, the average order size fell from GBP118.06 to GBP115.49 as cash-strapped consumers look to reduce spending, the company said.
“Evidence suggests we have largely overcome the operational challenges we faced in expanding our Hatfield capacity in the second half of 2011, and are set to meet growing demand through the rest of the year,” Tim Steiner, Ocado CEO, commented.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“We expect to see acceleration in sales growth as the year progresses. Despite the continuing economic headwinds in the UK, more and more consumers are seeing the benefits of online grocery shopping.”
