OCADO AND AO PREDICT BIG SHIFT

TWO big online retailers are banking on a permanent shift in shopping habits in the wake of the virus crisis.

Cyber supermarket Ocado said it was confident a surge in orders due to the pandemic would continue.

It notched up £1billion of retail sales in the six months to the end of May, a 27% increase.

Meanwhile, web-based electricals firm AO World reckons the pandemic’s “seismic impact” on retail will see many more shoppers convert to online shopping.

It benefited from the lockdown, with stuck-at-home families placing orders for new or replacement washing machines, TVs and other electrical goods.

Industry data shows online penetration of the grocery market has almost doubled in recent months to 13%, from 7% before the pandemic.

Ocado boss Tim Steiner said: “As a result of Covid-19 we have seen years of growth in the online grocery market condensed into a matter of months, and we won’t be going back.

“We are confident that accelerated growth in the online channel will continue, leading to a permanent redrawing of the landscape of the grocery industry worldwide.”

Ocado is also a technology business which makes money selling its know-how and operating systems to other retailers.

Half-year losses narrowed from £147.4million to £40.6m.

Sales at AO, which has undergone an overhaul in the past year too, rose nearly 16% to just over £1bn during the year to March 31. It swung from a £20.2m loss to a £1.5m profit.

John Roberts, AO founder and chief executive, said: “Covid-19 has accelerated a shift towards online shopping and we now need to cement that change.”

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