Ocado Retail reported its highest-ever sales over Christmas, while selling prices and customer numbers both rose in the fourth quarter of 2023.
The retail joint venture between Ocado Group PLC (LSE:OCDO) and Marks and Spencer Group PLC (LSE:MKS) said sales overall increased 7% between 20 and 24 December.
Retail revenue in the 13 weeks to 26 November totalled £609.4 million, up 10.9% year-on-year.
It was the fourth consecutive period of quarter-on-quarter growth and a significant increase compared to the 7.2% rise reported in the third quarter.
Shares in Ocado rose over 5% in early trading on Tuesday, while M&S shares were up 0.2%.
Average orders per week on Ocado.com of 407,000 grew 6.3% year on year and the number of active customers reached 998,000 at the period end, up 5.9% year on year.
The average basket value on Ocado.com was up 3.8% while basket size (number of items) remained broadly stable quarter on quarter at 44 items per order.
The average selling price increased 5.4% year on year, lower than market inflation, reflecting a focus on improving pricing relative to the market.
Looking ahead, the businss said it has confidence that the business will continue its encouraging momentum over the coming year, growing sales volumes ahead of the market.
But it cautioned revenue growth is likely to be impacted by lower growth in average selling price, however, reflecting investments in value and as food price inflation continues to subside.
Overall revenue growth in financial 2024 is expected to be in the mid-high single digits.