The online shopping platform Ocado saw its sales increase by more than a third last year. The coronavirus crisis and the partnership with Marks & Spencer boosted this growth.
New habits
Ocado, which has been delivering Marks & Spencer groceries to homes for several months, saw its retail sales rise 35 per cent last year to 2.2 billion pounds (2.5 billion euros). The group as a whole, which also includes tech company Ocado Solutions, did suffer a small loss of 44 million pounds (50 million euros). In 2019, the loss was still 214.5 million pounds (244 million euros), writes The Guardian.
CEO Tim Steiner said the coronavirus caused a dramatic shift in the way people do their shopping. According to the chief executive, the new consumption patterns will continue beyond the crisis. “Many customers who have tried online shopping for the first time have recognised its benefits and say they are unlikely to revert to their pre-crisis shopping habits.”
Due to the coronavirus pandemic, demand for home delivery of groceries exploded, accounting for 14 per cent of the market. However, Ocado was limited in its growth opportunities as its robot-operated warehouses were quickly operating at their full capacity.
Increased capacity
For the current year, Ocado expects the sales growth to be heavily dependent on the duration of the Covid-19 measures in the UK. However, the company will be opening three new high-tech warehouses in the upcoming months, significantly boosting its capacity.
