Ocado struggles to reach pandemic levels of revenue

UK online grocery pure player Ocado saw a 11,6% increase in the amount of customers compared to the pandemic Q1/2021. However, Ocado revenues declined by -5,7%, because of the -15% decline in the average basket size.

For Q1/2022 and Q2/2022 Ocado has unprecedented comparison numbers to match and thus the company will probably struggle to grow during the next quarter also. One has to note that that overall online grocery (and all grocery) markets are declining in the UK compared to the strict lockdowns a year ago.

When compared to the pre-pandemic levels, Ocado revenues are a bit more than 30% higher. Thus, the company can be seen to have gained a significant boost from the pandemic. However, the 30% boost is rather small increase compared to how much the online grocery market in the UK has grown since the start of the pandemic. The market has roughly doubled.