In its first quarter update, Ocado has announced that sales have increased by 13.1%.
Strong order growth
The sales growth is in line with the previous quarter and driven by orders growth of 16.7%. Ocado is now delivering 252,000 orders each week versus 216,000 last year. The order growth is a result of new shoppers using the service and more customers using the Ocado 'Smart Pass' to shop more frequently.
Basket decline slowing
Ocado's average basket size declined again by 1.6% to £110.84 but this was a slower rate of decline than in previous quarters. Ocado stated that the decline was driven by a reduction in multi-buy promotions and shoppers ordering more frequently. A declining basket size is a challenge for an online retailer as larger baskets are needed to cover the costs of picking and delivery.
Change in market pricing
Ocado's CEO Tim Steiner said, "while the market remains very competitive, there are the first signs of a change in market pricing dynamics coming through. However, it remains too early to predict how this will unfold throughout the year, and in particular is dependent on any future currency movements."