Ocado sees its turnover increase by 19.8%

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Revenue from Ocado’s retail business increased 19.8% in the first half of 2021, compared to the equivalent period in 2020. In the 26 weeks ending May 2021, the figure The company’s business reached £ 1.2bn, up from £ 1.02bn a year earlier. .

Tim Steiner, CEO of Ocado Group, said: “As we move towards a post-Covid-19 future, it is increasingly clear that the grocery landscape around the world has changed, for good. “

Customer behavior was already changing online before the pandemic – more than half of customers are expected to buy food online by 2021 – but the coronavirus pandemic has increasingly forced people to log in because lockout restrictions prevented them from performing daily tasks elsewhere.

For some, including Ocado, providing customers with online service at a time when people were forced to stay at home has proven to be beneficial for businesses.

When the UK entered its first lockdown in March 2020, Ocado saw such a surge in orders that it was forced to take down its website and opted to increase its tech workforce by 300 in the first half of 2020 to face increased demand.

As the lockdowns continued until the end of 2020, Ocado saw an increase in weekly online orders as more people chose to shop online.

The second half of last year also saw M&S and Ocado enter the first week of their online delivery partnership, allowing customers to order M&S food through the Ocado platform as part of a deal. 750 million pounds sterling.

But as restrictions begin to ease, Ocado said there was a slight drop in basket size in the second quarter of 2021, which he attributes to fewer meals being eaten at home as things are slowly returning to normal.

Due to this drop in basket sizes in the second quarter, with the number of items sold in a single purchase shifting “to pre-Covid-19 levels,” the retailer reported basket sizes at the end of the 26 week period to May 30. were 10% below the average basket size in the first half of 2021.

There is currently a lot of debate surrounding whether the changes in consumer behavior resulting from the pandemic will return to “normal” or whether an increased level of online shopping will continue.

Ocado has made every effort to ensure increased delivery capacity across the UK in order to prepare for strong demand for online grocery shopping from customers who are ‘now socialized’ into shopping habits. digital purchase in the wake of the pandemic.

This includes improving the efficiency of its distribution centers, in part through the introduction of more reliable robots, such as its 500 series bot, which is now operational in its Bristol distribution center, and the development of more UK distribution centers in the near future.

On the corporate tech side, Ocado continued to sign partners for its Ocado smart platform, which allows its partners to use a combination of software and physical Ocado distribution centers to deliver services. online grocery store.

The company has always had a reputation for putting technology at the forefront of its decisions and has spent the past five years researching the development of robotic technology. Earlier this year he invested £ 10million in Oxbotica, a developer of autonomous vehicles.


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