Skip to content
Search
AI Powered
Latest Stories

Ocado Retail sales fall on labour shortages

Online supermarket Ocado Retail on Tuesday reported a 3.9 per cent fall in revenue in its latest quarter year-on-year, with its performance held back by labour shortages.

Ocado Retail, a joint venture between Ocado Group and Marks & Spencer, said revenue totaled £547.8 million in its fourth quarter to 28 November versus £570.1 million in the same quarter last year.


The joint venture said that early in the quarter, headcount decreased across its delivery and customer fulfilment centre (CFC) roles due to changing conditions in the post-Covid-19 lockdown UK labour market but added that vacancies had since returned to more normal levels.

It said average customer orders per week were up 8.5 per cent to 375,100 versus the prior year, driven by a 22 per cent increase in active customers to 832,000.

However, the average basket's value fell 12 per cent to 118 pounds as many consumers returned to the office and spent less time at home.

The venture said that the participation of M&S products in orders continued to be strong, at nearly 30 per cent of the basket.

It also highlighted cost inflation due to nationwide utility price increases and dry ice shortages and is mitigating these through various management measures.

Ocado's revenue had fallen 10.6 per cent in its third quarter, hurt by a July fire at its warehouse in Erith, southeast London, which disrupted operations.

The JV said the 2020-21 outturn was expected to be in line with guidance.

It forecast a return to mid-teens revenue growth in 2022, at the top of the historic pre-COVID-19 range of 10-15 per cent and plans investments of around 50 million pounds in 2022 across a variety of areas to support growth.

More for you

A woman walks past a window display promoting an ongoing sale

A woman walks past a window display promoting an ongoing sale, on December 13, 2024 in London, England.

Photo by Leon Neal/Getty Images

Retail sales disappoint before Christmas

UK retail sales rose less than expected in the runup to Christmas, according to official data Friday that deals a fresh blow to government hopes of growing the economy.

Separate figures revealed a temporary reprieve for prime minister Keir Starmer, however, as public borrowing fell sharply in November.

Keep ReadingShow less
Sybren Attema, and Betty Eekchaut

Presidents Sybren Attema, FrieslandCampina, and Betty Eekchaut, Milcobel

Yazoo parent FrieslandCampina announces merger with Belgian rival Milcobel

Dutch dairy collective FrieslandCampina has agreed to merge with smaller Belgian rival Milcobel, creating a leading dairy cooperative.

FrieslandCampina, whose brands include Yazoo and Chocomel, said the merger will provide the foundation for a future-oriented organisation that has dairy front and centre for member dairy farmers, employees, consumers, and customers.

Keep ReadingShow less
Retail Shoplifting. Man Stealing In Supermarket
Photo: iStock

Home Office reaffirms commitment to abolish £200 shoplifting threshold

The UK government has pledged stronger measures to combat anti-social behaviour and shoplifting, which it acknowledges as serious crimes that disrupt communities and harm businesses.

Addressing a House of Lords debate on Monday, Home Office minister Lord Hanson detailed plans to abolish the controversial £200 shoplifting threshold and to introduce a new offence for assaults on retail workers.

Keep ReadingShow less
post office store
Photo: Post Office Ltd

Post Office launches wellbeing hub to support postmasters amid rising retail crime

In response to the mounting pressures faced by postmasters across the UK, the Post Office has unveiled a centralised wellbeing platform aimed at simplifying access to support resources.

Post Office said the surge in shoplifting and violent incidents, documented in the 2024 ACS Crime Report, has only intensified the demand for comprehensive support.

Keep ReadingShow less
Independent retailers face mixed outlook for 2025 – Bira
iStock

Independent retailers face mixed outlook for 2025 – Bira

Independent retailers have weathered one of their most challenging years in 2024, with multiple headwinds affecting the sector, according to the British Independent Retailers Association (Bira).

With pressures mounting throughout the year, independent retailers have faced an increasingly difficult trading environment marked by changing consumer behaviour and economic uncertainties.

Keep ReadingShow less