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British online grocer Ocado Retail has reported a remarkable 17.5% surge in retail revenue to £715.8 million for the 13 weeks leading to December 1, marking a significant milestone in its recovery journey. The joint venture between Ocado Group and Marks & Spencer has demonstrated robust growth, particularly during the festive season.
Chief Executive Hannah Gibson attributes this success to the strengthened partnership with M&S, highlighting the expansion of M&S product range availability from two-thirds to nearly 100% over the past two years. The strategic decision to reduce prices in 2024 has yielded positive results, with volume growth reaching 17% year-on-year during the fourth quarter.
Active customers grew by an impressive 12.1% to 1.12 million, whilst average weekly orders increased by 16.9% to 476,000. The festive period proved particularly successful, with M&S party food selections, including hot honey halloumi and pigs in blankets, emerging as customer favourites.
Stuart Machin, M&S Chief Executive, confirmed the joint venture’s strong performance, reporting a 20% increase in M&S volume on Ocado’s platform compared to the previous year. This success mirrors M&S’s broader resurgence, which has seen the retailer return to the FTSE 100 following strong performances in both food and clothing divisions.
Despite ongoing discussions regarding a final payment dispute between M&S and Ocado Group over unmet performance targets, Gibson maintains that the partnership is “working really strongly” together. The company’s focus remains on optimising existing infrastructure, though future expansion plans include a new customer fulfilment centre at an unspecified date.
The positive results represent a significant turnaround for Ocado Retail, which had previously struggled to maintain momentum following its pandemic-era boom. Annual retail revenue reached £2.7 billion in the year to December 1, with volume growth of 12.9% and consistent growth in the active customer base signalling sustained recovery.
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