Higher prices offset a drop in the number of items per shop at Ocado’s retail joint venture with Marks & Spencer.
Ocado Retail reported a 16.3 per cent rise in revenue to £1.5 billion in the six months to June 24, driven by improved marketing efforts and a broader range of M&S products.
Although the average number of items per basket declined, the average basket value increased by 0.7 per cent to £124.19, driven by a 1.4 per cent rise in the average selling price. It noted that this was still below grocery inflation of 3.1 per cent.
The performance helped narrow Ocado Retail’s operating loss from £25.7 million to £17.1 million.
Across the wider group, which includes its technology and logistics divisions, revenue rose 13.2 per cent to £674 million. Adjusted group profits rose 76.5 per cent to £91.8 million. The FTSE 250 company said turning cash flow positive in the next financial year was now its “core priority”.
UK jobs data: what the economists say
Paul Dales, Capital Economics: “The fallout in the labour market from the hikes in National Insurance Contributions and the minimum wage is not as big as previously thought. Even so, as payroll employment is falling and wage growth is easing, the Bank of England will still continue to cut interest rates despite yesterday’s strong inflation release.”
Suren Thiru, ICAEW: “The UK labour market is looking increasingly fragile with rising unemployment and plummeting job vacancies pointing to more businesses slashing hiring activity as ‘awful April’s’ substantial spike in costs begin to bite. Slowing wage growth suggests that skyrocketing employment costs and tougher economic conditions are a growing drag anchor on pay settlements.
Wage growth slows less than expected
Wage growth in the UK declined again in the three months to May, while unemployment crept up, official data showed.
Annual wage growth, excluding bonuses, was slightly higher than expected at 5 per cent in the three months to May, the Office for National Statistics said. Economists had expected the rate would slow to 4.9 per cent from 5.2 per cent in April.
The unemployment rate increased to 4.7 per cent, from 4.6 per cent. This is the highest level since June 2021.
The Bank of England closely watches wage growth for signs of how persistent domestic price pressures are likely to prove, especially after data on inflation in June rose to its highest since January 2024 to 3.6 per cent.
Liz McKeown, director of economic statistics at the ONS, said: “Pay growth fell again in both cash and real terms, but both measures remain relatively strong by historic standards.
“The number of job vacancies is still falling and has now been dropping continuously for three years.
“The labour market continues to weaken, with the number of employees on payroll falling again, though revised tax data shows the decline in recent months is less pronounced than previously estimated.”
UK set to pay zero US steel tariff
Sir Keir Starmer and President Trump will discuss the steel deal in Scotland next week
TIMES PHOTOGRAPHER JAMES GLOSSOP
Ministers are said to have made a breakthrough in talks with the Trump administration to cut tariffs on UK steel exports to zero as part of the government’s trade deal with the United States.
American officials are understood to have agreed in principle to British proposals that would allow British steel manufacturers to resume tariff-free exports to the US after months of 25 per cent taxes.
The deal is likely to be discussed by Sir Keir Starmer and President Trump when they meet in Scotland next week.
• Read in full: ‘Breakthrough’ in talks to eliminate US steel tariffs
Wall St recovers from ‘Trump to fire Powell’ shock
President Trump calmed markets after he said he was ‘highly unlikely’ to dismiss Federal Reserve chief Jerome Powell
AFP
Wall Street stock market indexes ended modestly higher on Wednesday after a chaotic half hour when news reports suggested President Trump was set to fire Federal Reserve chairman Jerome Powell.
Shortly before midday in America, the benchmark S&P 500 fell 1 per cent, the Nasdaq slid 1.1 per cent, the dollar dropped, and Treasury yields rose after Bloomberg reported the possibility of Trump replacing Powell and Reuters reported that Trump was open to the idea of firing Powell.
Trump was quick to calm markets saying it was “highly unlikely” he would dismiss the Fed boss, while continuing to criticise Powell for not cutting interest rates. His denial revived equity markets, with the Nasdaq closing up 0.3 per cent at a new high of 20,730.49 for the ninth time so far this year.
Asian stocks rose, and the FTSE 100 is expected to open up 40 points. The dollar strengthened, the gold price weakened, and oil was slightly higher at $68.76 a barrel.
