Ocado sales growth slows in third quarter

City A.M. Reporter
British online grocer Ocado saw a slowdown in sales growth in its fiscal third quarter and said full-year profit margins were likely to rise a less than expected as it invests in improving customer service.

Ocado, which mostly sells the products of upmarket grocer Waitrose, said on Monday gross sales rose 16.9 per cent to £148m in the 12 weeks to 7 August.

That was down from 17.2 per cent growth in the second quarter and compared with analyst expectations for a steady or slightly better performance.

Ocado, which has blamed a moderation in sales growth on capacity constraints, said it was targeting higher growth for the rest of its financial year as steps to increase capacity at its distribution centre north of London bear fruit.