Online grocer Ocado has revealed sales grew last year as it continued to benefit from a surge in internet shopping during the pandemic.

       Customer numbers increased 22.4% to 832,000, with the number of orders rising 11.9% to 357,000 although the amount spent per basket fell 5.8% to ￡129.

       But bosses said the growth could have been higher, if not for the HGV driver shortage, saying they were “constrained in the second half (of the year) by the ongoing tight labour market in the UK”.

       The past year has further reinforced that demand for online grocery is here to stay

       Tim Steiner, Ocado

       They also pointed out that Ocado’s UK operation, which is a 50/50 joint venture with Marks & Spencer was affected by the reduction in capacity at its Erith distribution centre due to a fire in July.

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       Despite the growth in sales, pre-tax losses widened from ￡52.3 million to ￡176.9 million in the 12 months to November 28 as the company invested heavily in new technology and new distribution centre openings.

       At a group level, Ocado revenues rose 7.2% to ￡2.5 billion.

       Chief executive and co-founder Tim Steiner said: “The past year has further reinforced that demand for online grocery is here to stay.

       “In the majority of mature markets, the fastest growing channel is online and to truly win here food retailers need to deliver the best offer with the best economics across all customer missions.

       “The innovation that is powering the development of the unique and proprietary Ocado Smart Platform is focused on providing an unequalled customer experience through ground-breaking technology which leads to an unrivalled low-cost operation.”

       He added that a new generation of robots will increase capacity and ability even further.

       During the year Ocado opened five new distribution hubs across the globe, including two in the US for the first time.

       This included three sites in the UK, including a mini site in Bristol and two larger ones in Purfleet and Andover – increasing capacity by around 40%.

       A further three have opened since the end of November, with a total of nine due to open this year – including six in the US.

       There are also plans for a second Zoom site in Canning Town in London to provide fast deliveries within 60 minutes of ordering, and a further three sites – including two outside the capital – due in the next 18 months.

       Ocado also flagged that this year will see its latest court battle with rival AutoStore hit the UK’s High Court where it is claiming patent infringement.

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       The battle has been played out in courtrooms in the US and Germany, with both sides arguing the other breached intellectual property laws.

       Ocado said “the outcome is uncertain” and several millions of pounds have been spent so far, but they remain “confident in the integrity of our intellectual property portfolio”.