Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
magazineOcado shares hit another new all-time high on surging grocery sales
OCADO (OCDO) £19.00
Gain to date: 60%
Original entry point: Buy at £11.87, 25 July 2019
Shares in online grocery supplier Ocado (OCDO) continue to confound the sceptics, hitting a new all-time high this week after reporting a surge in customer orders this quarter.
Having already seen retail revenues climb 10% in the first quarter thanks to an ‘almost overnight’ spike in demand under lockdown, the grocery delivery firm posted a 40% jump in revenues in April.
While the average basket size is below its peak, it is still significantly above this time last year and its customer fulfilment centres (CFCs) are running at their peak.
Meanwhile its technology solutions business marked a major milestone with the handover of the first international CFC to French supermarket group Casino. The site, south of Paris, went live in March.
Supermarket sales in France saw a similar spike to the UK, with initial stockpiling giving way to sustained high levels of demand as consumer spending shifted towards home consumption. Casino experienced ‘triple-figure growth’ in online grocery demand in the first quarter.
The next overseas site to use Ocado’s systems – Sobeys of Canada – is undergoing pre-launch testing. Ocado chief executive Tim Steiner is confident more international retailers will sign up to use the UK company’s platform as they look to roll out their online businesses.
SHARES SAYS: Hold on to the shares but don’t buy any more at the current price because it seems like so much future growth potential is already priced in.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
Issue contents
Exchange-Traded Funds
Feature
First-time Investor
Great Ideas
- Genus remains well positioned for further growth
- Civitas targets above-inflation dividend growth
- More reasons to be positive on ITV as viewing figures rise
- Buy this ETF to profit from the healthcare revolution
- Boris’ return to work by car message could boost shares in Motorpoint
- Ocado shares hit another new all-time high on surging grocery sales
