Ocado Group Plc is attracting more customers but suffering from the global inflationary crisis as the cost of energy soars and shoppers tighten their purse strings.
(Bloomberg) — Ocado Group Plc is attracting more customers but suffering from the global inflationary crisis as the cost of energy soars and shoppers tighten their purse strings.
The company’s online grocery service, typically viewed as a premium option for affluent Britons, boasted a record number of customers in its third quarter. It said active users were up 23% on the previous year to 946,000.
However, the value of the average basket dropped 6%. “Consumers are shopping smaller baskets and seeking value-for-money items as they respond to inflationary pressures,” Ocado said.
Higher costs for things like energy and dry ice are likely to weigh on the company’s profits in the fourth quarter, the company said in a statement.
The joint venture with Marks & Spencer Group Plc, known as Ocado Retail, forecast a small sales decline in the full year after revenue rose 2.7% in the third quarter, missing estimates.
Ocado Retail has slashed its forecast twice this year and said in July it only expects growth in the low single digits.
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