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Ocado’s retail business grows as company focuses on tech
[LONDON] Ocado Group Plc‘s retail business keeps steaming ahead as the UK online grocer counts down a year to the launch of its partnership with Marks & Spencer Group Plc.
Retail revenue grew 11 per cent for the 13 weeks through Sept 1, even though the average order size was down slightly. The company kept its projection for 10per cent to 15 per cent full-year retail revenue growth.
Ocado's home-delivery business keeps growing despite a tough retail market and the company's move to focus on its technology and logistics operations. It agreed to sell half of its retail business to Marks & Spencer earlier this year.
The company reassured investors that a fire at its warehouse in Andover, England, has had minimal impact on the business. It loosened its partnership with UK grocer Wm Morrison Supermarkets Plc in May as a result of the incident.
The company gave no updates on the technology arm, which has invested in automated meal preparation and vertical farming recently. After the M&S deal, that's the side of the business investors are watching more closely.
Ocado shares were down 0.6 per cent early Tuesday in London. The stock has risen about 70 per cent this year.