Ocado sees acceleration in sales

Online grocer Ocado said it expects to see an acceleration in sales growth as the year progresses as its Hatfield distribution centre, which suffered capacity problems in November, is now running at record levels of capacity.

The firm, which mostly sells Waitrose goods, said the number of orders delivered in a week exceeded 134,000 in the 12 weeks to 19 February 2012 compared to 124,000 the same time a year earlier.

Gross sales during the period increased 10.9% to £162.1m while average orders per week for the 12 weeks to 19 February 2012 increased by 13.4% to 116,987 from 103,207 in equivalent period in 2011. Average order size was £115.49 compared to £118.06 in 2011.

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Ocado said its Hatfield Customer Fulfilment Centre, is now operating at record levels of capacity after it underwent enhancements and took on more staff and expects further improvements in the second quarter.

Ocado's new distribution centre in Dordon, Warwickshire is expected to open later this year.

"Evidence suggests we have largely overcome the operational challenges we faced in expanding our Hatfield capacity in the second half of 2011, and are set to meet growing demand through the rest of the year. We expect to see acceleration in sales growth as the year progresses," the group said in a company statement.