Despite sales increases Ocado losses widen
Ocado said active customers at the end of the period stood at 360,000, with the rate at which it was acquiring new customers up 50% on last year.
Ocado chief executive Tim Steiner said: “The first half of 2013 has been an extremely busy period for us as we continued to grow both our customer numbers and average basket.
“We were delighted to announce a long-term agreement with our first strategic customer, Morrisons, to provide them with IP and operating services to help launch and operate their online grocery business. The positive financial impact of this agreement and the endorsement of our business model, positions us well for future strategic developments.”
Commenting on the figures, John Ibbotson, director of retail consultants Retail Vision, said: “Another pre-tax loss for Ocado. It’s now beginning to feel like it will never make a sufficient return on the millions invested, despite its deal with Morrisons.
“Its flawed business model remains and no amount of hype about its technology and the willingness of others to pay for it will change that.”
Source: talkingretail.com
