Shoppers buying more often from Ocado, which says robotic warehouses help it meet demand - InternetRetailing
Ocado, a Top50 retailer in IRUK Top500 research, said in a trading statement that revenue of £348.6m in the 13 weeks to September 2 was 11.5% up compared to the same time last year. The growth came as customers placed 283,000 orders a week, 11.4% up on last year, but as the average order value stayed the same at £106.26, from £106.25 last time.Ocado said that its new robotic warehouses were helping it meet growth in demand, as more shoppers buy groceries online. Commenting, Thomas Brereton, analyst at GlobalData, said: "While Ocado’s retail division continues to grow at pace (and controls c.11% of the UK online grocery market), CEO Tim Steiner is correct to describe its own retail operations as ‘showcases’ for the scalability and efficiency of Ocado’s proprietary technology; after all, the best way to entice further international partnerships is to exhibit a successful operating model in the UK. And Ocado is not slowing tech investment; a recent European patent shows that Ocado has begun design of robot-run urban farms able to grow vegetables and rear livestock, and is separately developing robotic hands capable of handling fruit packaging. "The future appears all bright for the so-called ‘Microsoft of Retail’. Unconfirmed rumours of a potential movement into non-food (if true) would certainly provide a sharp shock across the retail world – particularly as Ocado’s exclusive agreement with Morrisons only covers ‘online grocery services’.