Online Grocer Sees Growth Amid Cost of Living Crisis
- Price cuts boosted Ocado’s Q3 sales by 7.2%
- Average orders per week grew by 1.9% YoY
- Active customers reached 961,000 at the end of Q3
- Average basket value increased by 4.2%
- Ocado expects mid-single digit revenue growth and positive EBITDA for FY23
- Collaboration with M&S to bring lower prices, more choice, and greater convenience
Price cuts have helped boost Ocado’s sales in the third quarter, with retail sales up by 7.2% to £569.6m in the three months to August 27. The number of average orders per week grew by 1.9% year-on-year, and active customers reached 961,000 at Q3’s end, a 1.5% increase from last year. Average basket value rose by 4.2%. Ocado launched its Big Price Drop campaign in August, offering price cuts on hundreds of items. The company expects mid-single digit revenue growth and marginally positive EBITDA for the full year. CEO Hannah Gibson praised the team’s efforts amid the cost of living crisis and announced plans to collaborate with M&S for more affordable options and greater convenience.
Factuality Level: 10
Factuality Justification: The article provides accurate information about Ocado’s retail sales growth, average orders per week, active customers, average basket value, and CEO’s comments on their strategy and collaboration with M&S. It also mentions the ongoing cost of living crisis. The information is relevant to the main topic and not exaggerated or misleading.
Noise Level: 3
Noise Justification: The article provides relevant information about Ocado’s performance and its CEO’s comments on their strategy and collaboration with M&S. It also mentions the impact of price cuts on sales growth. However, it lacks in-depth analysis or exploration of long-term trends or consequences of decisions.
Financial Relevance: Yes
Financial Markets Impacted: Ocado’s stock price may be impacted by these financial results and future guidance.
Financial Rating Justification: The article discusses Ocado Retail’s financial performance, including revenue growth, active customers, average basket value, and EBITDA expectations. This information is relevant to investors and could potentially affect the company’s stock price in financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text.
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