Following recent price reductions by the likes of Tesco, Sainsbury’s, Morrisons and Waitrose, Ocado Retail has announced that it is cutting the cost of over 100 everyday food essentials.
The online grocer has reduced items across its own-label, branded, and M&S ranges by an average of 10%, with several products seeing cuts of up to 25%.
Ocado claims that it now sells the lowest-priced milk in the market after reducing the cost of four pints of own-label milk by 10p to £1.45. Other cuts cover Greek yoghurt, rolls, butter, and cheese, with more than 60 reductions reflecting the recent price cuts at M&S.
Several retailers and analysts have said that food inflation in the UK has now peaked, and the recent rounds of price cuts by the supermarket multiples add to hopes that it will moderate significantly in the months ahead after hitting record highs earlier this year.
Ocado has been working to improve consumer perception of its prices, with it launching a ‘Price Promise’ earlier this year, which compares prices against more than 10,000 like-for-like products on Tesco.com.
“At Ocado, customers are at the heart of everything we do and we want to give them great value on the products which matter to them the most, whether that’s large brands, Ocado own-brand or M&S,” said Hannah Gibson, CEO of Ocado Retail.
“Together with the Ocado Price Promise, cutting the prices of these 100 essentials means we’re even better value, alongside the service, range and quality which our customers love.”
Shares in Ocado Group surged over 40% last week after The Times newspaper reported a possible takeover interest from Amazon. However, the stock has fallen sharply since following unconfirmed reports that Amazon has dismissed the speculation.
NAM Implications:
- Obviously an advantage for those cash-strapped consumers prepared and willing to shop around the mults.
- Hereby increasing the pool of accessible essentials…
- …hopefully covering sufficient shopping needs in food?
