Ocado warns of sales fall as shoppers cut back in living costs crisis

Ocado says fuel costs for the year are expected to be about 15% higher. Photograph: Matthew Childs/Reuters

Ocado has warned that annual sales will drop because customers are trading down to value products and buying less overall amid a worsening cost-of-living crisis.

The online grocer, which is owned partly by Marks & Spencer, said sales rose 2.7% from a year ago in the 13 weeks to 28 August, an improvement from the drop in the previous quarter.