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Ocado Morrisons Marketing

Ocado grows online grocery share with more than half of purchases made on mobile

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By John McCarthy, Opinion Editor

June 28, 2016 | 2 min read

Online grocer Ocado has reported strong first half performance with pre-tax profits up by 18 per cent to £8.5m in the six months leading to 15 May, furthermore the company seems to have adapted to the mobile landscape with 55 per cent of orders are now checked out using a smartphone or tablet.

Ocado faced off competition from upstart Amazon Fresh

the company’s retail profits were up by 15 per cent to £584m on the back of a seemingly successful tie-up with Morrison’s shopping chain.

Disappointing investors was the lack of the promised (in September) “international tie-up” emulating the Morrison’s partnership.

Tim Steiner, chief executive of Ocado, said: “We have been gaining share in the online grocery market and expect this to continue. The last few years have shown beyond doubt that British shoppers are choosing the benefits of grocery shopping online and we believe that the momentum of channel shift away from bricks and mortar stores will continue.

“The more opportunities customers have to try grocery shopping online, the more they will be attracted to Ocado’s superior customer offer.

The company claims to deliver 225,000 orders weekly.

Rival Amazon Fresh launched in June, carrying hundreds of thousands of goods – including Morrison’s products.

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