Share of British online supermarket Ocado plunges due to falling sales
The website British online supermarket Ocado Retail plunged 9.28% on the stock market on Tuesday after announcing that it would its customers bought fewer items per order as Christmas approached in response to the cost of living crisis and the good performance of traditional markets.
Ocado Retail (a 50/50 joint venture between Ocado Group and Marks & Spencer) announced a 0.3% increase in sales in the fourth quarter, until November 27, and a 15% increase during the five days before Christmas.
The website The average value of the basket, however, decreased by 1.3% during the quarter.to £117, as a 7.6 per cent increase in average selling prices was offset by an 8.3 per cent drop in the average number of items per basket.
“While Ocado is gaining new customers, people are buying less. This has a disproportionate impact on online deliveries.that cost about the same, whether it’s two potatoes and a block of cheese or an entire weekly purchase,” writes Russ Mould, director of analytics at AJ Bell.
“Even with differentiated prices based on the quantity ordered, The reduction in basket sizes should continue to have a significant impact on margins.. In addition, Ocado is charging high prices at a time when UK household budgets are under pressure,” adds Mould.
TescoBritain’s largest supermarket and Sainsbury’sthe second largest supermarket in the United Kingdom, announced in recent days the good performance of their Christmas sales.