The Ocado Group PLC (LON: OCDO) share price edged 5.13% higher after releasing its Ocado Retail trading statement for Q3 2023, representing 13 weeks to 27 August 2023. Ocado Retail is a joint venture between Marks & Spencer Group plc (M&S) and Ocado Group plc (Ocado Group).
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The company revealed that retail revenues came in at £569.6 million, growing 7.2% compared to last year's quarter. The improvement was accelerating vs. the 5% revenue increase reported in H1. The company also noted that it had returned to positive growth in total items sold in the last month of the quarter.
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Ocado launched its Perfect Execution Programme in January, further strengthening its customer proposition. Furthermore, the company also launched its Big Price Drop campaign in August to coincide with the return to school, further strengthening its price credentials, while “perfect deliveries” remain on time and complete at high levels.
The retailer’s average weekly orders from Ocado.com were 381,000, which marked a 1.9% improvement compared to last year. Ocado’s active customers rose 1.5% to 961,000 compared to Q3 2022, while the number of mature customers (defined as those who have made a fifth shop at Ocado.com grew 6.6%.
The average basket value at Ocado.com rose 4.2%, while the basket size (number of items) remained broadly stable quarterly at 44 items per order. The ASP rose 8.4% annually, considerably lower than market inflation, showcasing Ocado’s continued focus on improving pricing compared to the market.
Hannah Gibson, Ocado Retail's Chief Executive Officer, said: “It has now been a year since I joined Ocado Retail, and in January, we set out our Perfect Execution strategy, making sure every element of our customer proposition and our operating model is at its best. We are delivering on this plan and have great momentum in the business, with revenue growing faster in Q3 than in H1 and a return to positive volume growth in the last month of the quarter. The continued progress in Q3 underpins our confidence in delivering our FY23 guidance of mid-single digit revenue growth and full-year profitability, and we have started the final quarter positively.”
Ocado share price.
The Ocado share price edged 5.13% higher to trade at 826.10p, rising from Monday’s closing price of 785.80p.
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