Ocado is ramping up its price-cutting programme in a move that could help it attract customers in the months leading up to the all-important Christmas trading period.
The online grocer has reduced prices on over 500 items, including autumn and winter lines, as part of its ‘Big Price Drop’ initiative that was launched after cost pressures in the sector started to ease.
Products in the latest round of cuts include fresh, ambient and household products with a particular focus on cupboard fillers for the colder months, such as cereal, rice and pasta sauce. Ocado claims it has reduced prices on these items by an average of 8%.
It is the retailer’s fourth round of price cuts since June, taking its total number of price reductions to more than 1,000.
Retail Chief Executive, Hannah Gibson, said: “Ocado is known for its superb service and unbeatable choice, and now more than ever, we’re committed to delivering great value too. As a result, we’ve reduced the prices of more than 1000 products since June across big brands, own label and M&S items. So this autumn, if you want an amazing range of great value products delivered straight to your door, Ocado is the place for you.”
Last month, Ocado Retail kept to its full-year outlook after reporting a step-up in third-quarter revenues, helped by a return to volume growth in the last month of the period.
NAM Implications:
- If Ocado have chosen the right product price reductions…
- …it should help.
- Now, that Christmas shopping has already started…
- …the issue is whether ‘its superb service and unbeatable choice’ counts…
- …for more than value when compared with the mults.
