Cost-of-living crisis drives down Ocado sales

Ocado has said that slower growth in consumer purchases and lower average basket sizes has pushed its retail sales down by 8 per cent in the second quarter.

This compares to a decline of 5.7 per cent recorded earlier in the financial year.

In the first quarter of the year, retail revenue was down from £599 million in the first 13 weeks of 2021 to £564 million.

The online grocery retailer said that while customer numbers are up 12 per cent, the rate of growth has slowed as consumers are attracted by short term discounts and promotions amidst the cost-of-living crisis.

Ocado Retail expects that with utility prices anticipated in the autumn sales growth this year will be in the low single digits rather than 10 per cent previously forecast.

The results were published as the company’s co-owner Marks & Spencer announced strong performance despite facing economic headwinds.

Pre-tax profits at the multinational retailer jumped to £522 million in its latest financial year, compared to £403 million before the pandemic.

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