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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Go to Proactive UK

Retail

Ocado gains as analysts point to better sales growth than online rivals

News that Ocado Retail was the UK’s fastest-growing grocery retailer over the three months to April 20 continued to benefit shares in joint owner Ocado Group PLC (LSE:OCDO) on Friday.

Come the afternoon, shares in the company, which owns online grocery business Ocado alongside M&S, were up 2.4%.

NIQ data on Thursday showed Ocado Retail’s sales over the three months increased by 12%, with analysts highlighting the strong performance.

Shore Capital’s Clive Black noted online UK grocery participation would likely climb as high as 15% of the total market by 2030, from 12.6% currently.

Wider growth among online retailers, of 3.2% for the period, was behind the rest of the grocery market, he added.

Ocado “is gaining overall” as a result, Black said, adding the online grocer had enjoyed a “good performance” ahead of the anticipated uptick in use of such services over the coming years.

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