Tuesday 17 September 2019 8:51 am

Ocado sales growth accelerates after Andover fire recovery

Online supermarket Ocado reported accelerating growth in the third quarter after it secured an additional warehouse following a fire at the firm’s Andover site.

Retail revenue increased 11.4 per cent to £386.3m in the 13 weeks to 1 September, the company reported in a trading update this morning. 

Read more: Firefighters put out blaze at another Ocado warehouse

Average orders per week grew 12.1 per cent to 314,000 as more slots became available. 

The average order size dipped to £105.42, a decrease of 0.8 per cent, which the company said reflected more frequent purchases. 

Ocado, which recently sealed a joint venture deal with Marks & Spencer, opened a fourth warehouse in Erith to allow extra capacity after its Customer Fulfilment Centre in Andover was damaged in a fire. The impact of the fire was expected to wipe two per cent off sales, and removed 10 per cent of group capacity.

The delivery giant reported a pre-tax loss of £142.8m in its latest half-year results in July, after the fire resulted in a £98.5m hit to the balance sheet.

“These first set of results from the joint venture between Ocado Group and M&S show the resilience of Ocado following the Andover fire and the momentum the business now has,” Melanie Smith, Ocado Retail chief executive said.

Read more: Ocado develops firefighting robot after warehouse blaze

“As we continue to enhance our offering and add more capacity in the UK, our leading partnership will deliver the very best experience to an ever-growing number of customers”.

The Ocado Retail joint venture will provide M&S with an online delivery service by September next year.

Main image credit: Getty