Ocado’s retail revenue fell in the first quarter of 2022 as the online grocer warned about uncertainty caused by the rising cost of living.
Revenue fell 5.7% in the 13 weeks to the end of February as customer orders rose 11.6%. The average basket size at the business, a joint venture with Marks & Spencer, fell 15%.
Ocado said the figures reflected a return to more normal shopping patterns as pandemic restrictions were eased and people returned to work. Revenue was 31.7% higher than two years earlier before the pandemic hit.
The FTSE 100 group said food price inflation and the effect on demand caused by the rising cost of living were hard to predict. Revenue growth for the full year is likely to be close to 10% and profit margins will be squeezed, Ocado said.
Melanie Smith, Ocado Retail’s chief executive, said: “Given that we are comparing a post-lockdown quarter this year with a lockdown quarter last year, this has meant that sales were down 5.7% in the quarter, not helped by the softening market overall, with smaller baskets offsetting the increase in the number of customer transactions in the quarter.”
