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Ocado sees 35% revenue growth as grocery landscape ‘changing for good’

Ocado sees 35% revenue growth as grocery landscape ‘changing for good’

Ocado has enjoyed a 35% rise in revenue after a year in which the global pandemic forced many people to buy online for the first time.

The online grocery delivery firm said the food retail landscape worldwide is changing “for good”, beyond the pandemic.

Amid rocketing demand the UK-based firm, which is 21 years old this year, narrowed losses from £214.5m to £44m.

In its full year results for the 52 weeks ended November 29 2020, Ocado saw retail revenue growth of 35%.

The rise in online shopping as a result of the pandemic has enabled the firm to gain a strong foothold in the groceries market, with online grocery market share in the UK nearly doubling over the last year according to Kantar.

Tim Steiner, chief executive officer of Ocado Group, commented: “As we reflect on 2020 I would first and foremost like to pay tribute to the remarkable work of our colleagues in exceptionally challenging circumstances.

“The group’s performance over the course of the year is testament to their dedication and I am confident that their adaptability and resilience will enable us to take full advantage of the opportunities ahead.

“The rapid acceleration of many pre-existing trends in business and society has been a feature of the Covid-19 crisis and the dramatic channel shift in grocery is a clear example of this. The landscape for food retailing is changing, for good.”
“As we look ahead to a post-vaccine world and a return to a new normality, Ocado Group is very well placed to enable our grocery partners worldwide to bring the best customer experience to market, responsibly, with high levels of hygiene and superior, sustainable, and proven economics.”

Lockdown has thrown up challenges for all supermarkets and Ocado itself has struggled to deliver smoothly at all times.

The firm, which previously delivered for Waitrose, had to cancel some orders when its new partnership with Marks & Spencer launched on 1 September, angering customers.

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