Ocado has lowered its annual sales outlook as it reported a 5.7% year-on-year fall in revenue in its latest quarter, which it said partly reflected a softening of the overall market as Covid restrictions eased and more customers returned to offices.
The online supermarket said retail revenue for the 13 weeks ending February 27th fell by 5.7% to £564.7 million, which it linked to a 4% fall in UK grocery market sales amid higher prices.
Regarding its overall outlook, Ocado said it is now expecting revenue growth in 2022 to be closer to 10% after having forecasted growth in the mid-teens only last month. The group said its caution reflected uncertainties over inflation which has increased significantly in recent weeks and has seen less items in customers’ shopping baskets.
Ocado and partner Marks and Spencer will be looking to change strategy to try and increase the amount each customers spends and attract new ones. Marks and Spencer are constantly looking for new routes to market and recently teamed up with Costa Coffee to sell M&S food in an attempt to become the first choice for customers buying food and coffee on the go. Significant investments are being made in food as well as in multi-media campaigns.
Even though Ocado lowered their forecast for the year, its marketing team will want to exceed it, acquire more customers and promote products to increase number of items purchased per shop. Are you able to drive consumers to Ocado? ALF can introduce you to its marketing decision-makers.