Waitrose takes on Ocado in online food shopping market

Sunday, 19 June 2011 12:10

Waitrose is planning to take on rival online supermarket Ocado as it attempts to increase its market share in the growing food home delivery sector.

Waitrose will begin a big advertising campaign outside of London this month before targeting shoppers in the capital, once an agreement not to compete with Ocado comes to an end on July 1st.

Waitrose owner, John Lewis, had a 29 per cent share in Ocado before selling it in February, thereby severing the connection between the two companies and opening up the opportunity for a similar service to be established behind the Waitrose brand.

Waitrose currently offers delivery service from 96 per cent of its stores outside of London but home delivery is only available from 16 stores in the capital. This is set to change once the competition agreement expires on July 1st.

Waitrose was a pioneer for home delivery in the 1930’s and is aiming to make the experience of shopping online with them distinct and closer to the experience of shopping n an actual store.

Once the new agreement between the stores comes into effect Waitrose will initially be allowed to deliver from stores and then from a depot which is expected to be opened in Acton, West London in the autumn.

It has been reported that Ocado is not particularly concerned about the rivalry to its market share and customers as it sees any influence that increases the overall proportion of customers using home delivery services for supermarket shopping as beneficial to its business model.

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