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Ocado struggling to cope with demand

By: Deborah Bates
04 March 2011

Ocado could potentially boost its logistics recruitment, after claiming that it was struggling to meet a growth in demand for its deliveries.

The company, which delivers Waitrose products to a range of customers throughout the UK, has reported that its quarter one sales were up 25 per cent - keeping the firm in profit for now.

It has also said that its growth could be even bigger, if it had the capacity to keep up with demand; which could mean more driving jobs are created for skilled professionals.

Ocado's chief financial officer, Andrew Bracey, confirmed how the firm had come to its conclusion - by tracking the amount of customers that had viewed the site, but been unable to find a delivery slot to book.

He told Reuters: "It is very significantly greater than the rate of growth we are currently observing," and continued to say that in addition, the demographic accessing the website had also changed.

Bracey said: "We are seeing, increasingly, Ocado going into a lower level of the demographic," adding that over 60 per cent of customers using the site had an income of less than £60,000; whilst 30 per cent earned less than £40,000.

The organisation's chief executive officer also spoke out about the growing demand for the Ocado service, telling III.co.uk: "Despite the economic headwinds in the UK, more and more consumers are seeing the benefits of online grocery shopping and we are increasing capacity to meet this demand."

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