Ocado Retail has posted a rise in sales during its first quarter but warned that the coronavirus pandemic could cause “further disruptions” to the business.

The online grocer said retail revenues jumped 10.3% to £441.2m during the 13 weeks to March 1.

But it said that, in the weeks that have followed that period, it has seen an “increased demand for orders” and “higher value baskets” as shoppers stock up on certain products.

Sales in its second quarter to date have grown at around 20% as a result, the etailer said.

Yesterday, Ocado was forced to close down its website and app as it became weighed down by the weight of that additional demand. It has also stopped registrations for new customers.

Ocado said the coronavirus pandemic had “placed the business under unprecedented strain” but said it was taking steps to “meet as much of the demand as we can”.

Despite the surge in demand, Ocado maintained full-year guidance of between 10% and 15% sales growth, owing to “a large element of forward-buying of ambient items” which would dissipate later in the year. 

Ocado retail boss Melanie Smith said: “The impact of higher basket values and order demand, amid growing public concern over the coronavirus, was limited in the quarter, although this has since picked up significantly and growth in the second quarter is so far double that of the first quarter. We expect the impact of forward-buying, however, to unwind at some point.

“However coronavirus unfolds, what is clear is that the fundamentals at Ocado Retail are strong, illustrated by double-digit increases in customer orders, driven by consistent execution, which delivers a best-in-market customer experience.

“Preparations for the M&S switchover from Waitrose, this September, are on track, and we are looking forward to building closer and stronger relationships with our branded suppliers as part of the transition.”