Advertisement

Ocado Group confirms talks with Morrisons as it posts sales jump

Online grocery firm Ocado Group revealed it was in negotiations with Morrison Supermarkets to launch a shopping site as it posted a 14.4 per cent rise in sales.

Online grocery firm Ocado Group revealed it was in negotiations with Morrison Supermarkets to launch a shopping site as it posted a 14.4 per cent rise in sales.

Ocado is in discussions to help Morrisons set up a grocery website the UK as more consumers opt to do their shopping online.

Advertisement - Article continues below

It may lead to an agreement to license some of Ocado's existing and future intellectual property and operating knowledge for the purposes of the website.

Ocado's partnership with Waitrose would not be affected by a potential agreement with Morrisons, the firm stressed.

The group made the announcement alongside its results for the 12 weeks to February 24th which showed gross sales rose to £185.5m from £162.1m the previous year.

Average orders per week grew 12% year-on-year to 130,995 as the company benefited from an increase in online consumer spending.

"We maintained the momentum in sales growth and new customer acquisition with which we entered the year," Chief Executive Officer, Tim Steiner, said.

"Further improvements to the proposition to customers that we are making this year should enhance our appeal to shoppers and enable us to continue this momentum."

The company expanded its operations during the period to meet demand, with the opening of a customer fulfilment centre at Dordon, Warwickshire.

Ocado's first dedicated non-food distribution centre also became operational in January, one month ahead of schedule, supporting the strategy for further sales and range growth in non-food.

Shares rocketed 9.68% to 150.70p at 08:20 Thursday.

RD

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

House price crash: UK property prices are falling – so where next?
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020
The end of the bond bull market and the return of inflation
Inflation

The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020
How “support” and “resistance” can help you spot trading opportunities
Sponsored

How “support” and “resistance” can help you spot trading opportunities

Technical analysis can help traders manage risk and decide where to enter and exit a trade. One simple form of technical analysis is the concept of “s…
6 Jul 2020