Ocado has warned its grocery shoppers will cut back on spending as they turn to cheaper supermarkets and add less to their baskets.
In a trading update, the London-listed firm noted “accelerating trading down and smaller baskets, particularly over the last few weeks” and said it now expected to see “a small sales decline” in 2022.
It forecast it would get close to break-even EBITDA this year, with energy and dry ice costs “likely to weigh on profitability” in the fourth quarter.
The firm’s share price tumbled almost ten per cent on Tuesday morning.
Ocado sales have recovered over the past few months, after a drop in the second quarter.
Sales were up 2.7 per cent to £532m in the three months to 28 August, in comparison with the same period a year prior.
The online grocer has also reported record numbers of new customers, upending the concern that Brits would turn to cheaper alternatives amid the cost of living crisis.
The company anticipates “even stronger growth” in the final few months of the year around as Christmas.