Ocado sees customer surge in Q3, raises full-year outlook

Ocado has reported a significant increase in customer numbers, reaching over 1.06 million in the third quarter, compared to 961,000 during the same period last year. This surge in customers has contributed to a 15.5% year-on-year revenue growth, totaling £658 million for the quarter ending September 1. The average number of orders per week also rose by 14.7% to 437,000, indicating a strong demand for Ocado's services. Despite a slight decline in average selling prices by 0.4%, the retailer's performance has outpaced the broader online grocery market, which saw a growth of only 4.4%. Hannah Gibson, the chief executive of Ocado Retail, emphasized the company's commitment to providing customers with exceptional choice, service, and value. The retailer's strategy appears to be resonating with consumers, as evidenced by the increased frequency of shopping and improved customer satisfaction. Analysts have noted that Ocado's revenue growth is a strong performance, especially when compared to market data from Kantar, which reported a lower growth rate of 12.9% over the summer months. In addition to the rise in customer numbers and revenue, Ocado's first-half losses nearly halved, reflecting better-than-expected earnings from its robotic warehouse operations. The company reported a pre-tax loss of £154 million for the six months ending June 2, a significant improvement from the £290 million loss recorded a year earlier. This positive trend suggests that Ocado is on a path to recovery and growth. Overall, the combination of increased customer engagement, revenue growth, and improved operational efficiency positions Ocado favorably for the remainder of the year, prompting the company to raise its full-year revenue guidance to double-digit percentage growth.