Ocado reports more than 15 percent growth

Online retail grocer Ocado recently reported a 16.6 percent increase in year-over-year sales, comparing late November sales figures from 2010 and 2011. The retailer attributed its continued success in a down economy to the growth of online retailing in the U.K.

"We believe this growth is evidence of a structural shift in consumer behaviour and we will continue to see an expansion of the online grocery retail market," said Tim Steiner, CEO of Ocado, in a telephone interview with Bloomberg.

Ocado predicted its sales will continue to increase by 10 percent in the first quarter of 2012, and should continue to grow throughout the year. One aspect of the business that is driving company growth is on-time deliveries to consumers.

Sharecast reported that consumer demand for online grocery stores continued to exceed Ocado's operational capacity in 2011, prompting the retailer to expand its distribution depot in Hatfield and set up other facilities to support its increased order volume.

In regards to its Ocado Delivery Pass scheme, more members have signed up in the past 12  months, and the retailer expects subscriptions to continue to increase. The number of active customers increased 13.5 percent on a year-over-year basis, reaching 298,000 at the end of 2011, the source reported.