Ocado Retail downgraded its full-year sales and profit outlook today after seeing customers trying to navigate the cost of living crisis by buying fewer products and trading down to cheaper items. In a third-quarter trading update, the online supermarket said it expected to see "a small decline" in sales for the year to November and "close to break-even" underlying profits in the face of higher operating costs caused by the surge in energy and fuel prices. The cost of dry ice, which is used in the transport of frozen products, is also on the rise with Ocado "looking at alternatives". The company had previously expected annual sales to grow in the mid-single digits, with analysts forecasting an underlying profit of around £48m and sales growth of about 5%. News of the weaker outlook sent shares in the group down nearly 10% in early trading. During Ocado's third quarter to 28 August, sales rose 2.3% to £531.5m.