M&S deal helps Ocado deliver

Online grocer Ocado has said customers are buying more Marks & Sp encer pro ducts than they did Waitrose goods, after switching to a new deliver y deal with the high-street giant this month.

The group welcomed “positive customer reaction to the addition of M&S to the range” – but admitted that some shoppers had been left unable to make orders as it struggled to meet demand. And it was forced to cancel some orders after the launch of M&S products on its site from 1 Septemb er, which saw it split from former partner Waitrose.

Chief financial officer Duncan T at ton-Brown insisted the disruption to customers from the switchover was “very minor,” saying: “Our service is very much in demand – unfortunately that means we can’t serve all customers .” He also said the group was working to increase its capacity by 40 per cent through to 2021.

O ca do added that it was expecting strong full-year results, with underlying earnings of at least £40 million thanks to strong retail sales in its third quarter to 30 August. The group’s retail arm – a joint venture with M& S–saw revenues jump 52 percent to £587.3 min the period.

The jump in Ocado’s sales was also highlighted in new figures from Kantar. It found that total UK grocery sales growth slowed in August as shoppers spent £155m less in super markets amid the Eat Out to Help Out scheme and some people no longer shielding. Grocery sales increased by 10.8 per cent in the 12 weeks to 6 September, but saw growth slow to 8 per cent in August.

Morrisons, the UK’S fourthbiggest supermarket, was one of the strongest performers over the past three months, as sales jumped by 12.9 per cent, but Ocado achieved a 41.2 per cent year-on-year jump.

Total UK online grocery sales rose by 77 p er cent year on year for August, bringing the cumulative increase in orders to £3.2 billion since lockdown began, Kantar said.