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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 "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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