Ocado notches up a half-year profit while Tesco and Morrisons both lose sales and market share over past three months
Opening the door: Chief executive Tim Steiner
Ocado notched up a half-year profit as data showed that Tesco and Morrisons both lost sales and market share over the past three months.
Ocado, which mainly sells food supplied by Waitrose, also said it was testing technology in a smaller warehouse in Andover which it could replicate abroad for foreign supermarkets. And the online grocer has a second new warehouse in which it is testing a secret project.
Ocado posted a pre-tax profit of £7.5m over the last six months, up from a £1m loss, having periodically made a half-year profit in the past.
Chief executive Tim Steiner said: ‘We are on course for a full-year profit but to be honest that’s not our focus. We are sure we will do it but our focus is on long term value for shareholders.’ Sales increased to £442.4m from £382.7m but the shares fell 16.3p to 355p.
Steiner said trading had been affected by customers switching from fruit juices to water in a bid to avoid hidden sugars.
Ocado is also testing a click and collect service and has been affected by a price war between the big four grocers through price matching against Tesco.
This meant its average customer order fell to £114.43 from £114.90.
Separately, data from market research firm Kantar saw Sainsbury’s and Morrisons increase market share and discounters Aldi and Lidl continue their growth.
Kantar said its measure of price inflation fell to 0.8 per cent – the lowest level since its records begun in October 2006.
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