Online grocer Ocado sees profits soar by 11% to £609m — after sales in its retail arm deliver
ONLINE grocer Ocado is back in profit for the year — after sales in its retail arm finally delivered.
They climbed by 11 per cent to £609million in the three months to November 26.
The strong finish followed a first-half loss of £2.5million.
And it helped to lift annual sales in its retail division — a joint venture with Marks & Spencer — by seven per cent to £2.4billion.
The firm is now confidently predicting positive results for the year.
Ocado cashed in during the pandemic but has had to battle a slump after shoppers returned to supermarkets.
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It said price-matching with Tesco and improved service had helped to attract customers. And it cut costs by shutting an old warehouse.
Ocado hiked prices by around 5.4 per cent in the three-month period, but it pointed out that the rise was below the rate of inflation.
Boss Hannah Gibson said: “We have focused first and foremost on being a great shopkeeper, improving our unbeatable range, great value and unrivalled experience — all underpinned by improved cost efficiencies.”
The company has introduced more efficient ways of working.
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These have allowed it to boast that its workers take only ten minutes to pick a 50-item order — compared with more than an hour for supermarkets that fulfil online orders from stores.
Improvements include new robotic picking arms and a hi-tech warehouse in Luton.
It has also launched price cuts on more than 1,700 products under its Big Price Drop, with an average cut of five per cent across the range.
The stock market welcomed the good news yesterday.
Ocado’s share price soared by more than seven per cent in early trading, although it levelled out later in the day as the markets became more subdued.
PRET HAS A LITTLE IDEA
SANDWICH chain Pret A Manger hopes to attract more families into its stores by launching a kids’ menu aimed at four to 10-year-olds.
Tempting treats will include chicken & cucumber triangle sandwiches, a pizza toastie and a mango & banana yogurt pot. The grub will be offered in 70 per cent of Pret’s 460 shops.
Clare Clough, Pret director, said: “It’s a major milestone to bring Pret to a more diverse customer base, from office workers to entire families.”
Pret has recently expanded rapidly outside London,with openings in Bishop’s Stortford, Colchester and Worthing.
The company said areas such as Yorkshire and Manchester are seeing strong trading.
But it’s facing a challenge from rival food firm Prezzo, which is launching a new pizza and pasta chain at train stations.
BOOTHS’ DELIGHT
FAMILY-OWNED northern food and drink store Booths had a great Christmas as customers snapped up seasonal delights, it has reported.
Sales climbed 8.7 per cent in the key three-week trading period ending January 6.
Sales of turkey and poultry rose 10.6 per cent with Christmas bakery up 21 per cent.
Its Festive Christmas Baguette, sold in its cafes, was the most popular, with sales soaring 28 per cent.
Boss Nigel Murray said: “The quality of our offer was the best yet.”
CARDS COLLAPSE
SHARES at stationer Card Factory crashed by more than ten per cent yesterday despite a solid trading update.
The firm said profits will reach previous targets after a “strong” Christmas period.
Store revenues grew by eight per cent on a like-for-like basis, and sales climbed ten per cent to £476.9million for the 11 months to December 31.
Boss Darcy Willson-Rymer said: “Our value-for-money offerings continue to resonate with customers.” He said pre-tax profits would come in at up to £62million.
FOOTFALL in shops rose 3.3 per cent last year despite the cost of living crisis, rail strikes and stormy autumn weather, according to MRI Software.
Its study shows that 84 per cent of shoppers are looking out for cheaper brands.
SPRING IN THE STEP AT WILKO
THE relaunched Wilko brand will open new high street stores in St Albans and Rotherham in the Spring.
The shops are being opened by its brand owner CDS Superstores, which also owns The Range.
It opened stores before Christmas in Plymouth, Exeter and Luton, and their success has spurred it to open more, the company said.
The outlets will be similar to the old ones, offering own-brand home and garden items next to well-known names.
Boss Alex Simpkin said: “The initial reaction to the new concept stores has been even better than we’d hoped.
“The feedback is giving us the confidence to continue with our store opening plans.”
He said the business is in advanced negotiations with landlords and is also planning to give ex-Wilko workers “priority as a part of the recruitment process for the new stores”.
DRIVERS’ COVER UP
THE cost of car insurance has leapt by 52 per cent over the past year, making the typical premium £950, reports Compare the Market.
Young drivers’ premiums are up by £655 to reach £2,002.
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Drivers of popular brands like Ford and Volkswagen have seen rises of more than £300.
The comparison site said the rises may be due to insurers’ claims bills going up as inflation lifts the price of car parts, energy and labour.