Ocado takes on Sainsbury’s with own label range
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Ocado is launching an own-brand range in a bid to build a more mainstream positioning and compete with rivals Sainsbury’s and Tesco.
From today (20 September), Ocado will stock 200 own label products comparable to the supermarkets’ standard ranges and will look to build a 1,000 strong own brand range.
The online grocer says its own label range is “complementary” to the Waitrose’s product range it stocks, not a direct rival to the Waitrose Essentials range.
A spokesperson says that now Ocado is a public company, it is becoming more mainstream and so the new own brand range is looking to appeal to Tesco and Sainsbury’s customers by providing a wider range of products and prices.
The own label range has been developed by identifying the products Ocado customers search for, but are not currently stocked. Ocado says the range will “fill the gap” in the range of Waitrose and non-Waitrose products Ocado offers.
The launch comes just months after Ocado renewed an exclusive 10-year deal to supply Waitrose products.
In September, Ocado reported a near 30% rise in sales.
YouGov Insight:
Waitrose
- Only 3% of main shoppers use Waitrose for the bulk of their shopping.
- London sees the highest usage of Waitrose (25%)
- Waitrose is least popular in the North where it records only 2% of usage
- 1 in 4 main Sainsbury’s shoppers use Waitrose for their secondary shopping
Click here for more information on this YouGov market report
Readers' comments (2)
Danielle Pinnington, Managing Director, Shoppercen | Mon, 20 Sep 2010 1:57 pm
It's interesting to hear about Ocado's own brands launch today since earlier this year we reported that 56 percent of shoppers were trading down from branded goods to supermarket own label products. However, of late we've heard evidence that shoppers are starting to move back towards branded goods in certain categories due in part to promotional activity making the value difference much less favourable for own label goods. So Ocado could be a little late arriving in this market.
We also think that Ocado will need to be very clear on how their own label is different to Waitrose own label products as we're not sure shoppers will understand this latest move.
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Maria Vardy | Wed, 22 Sep 2010 12:40 pm
Yes agree, but as an avid ocado shopper, who have come to represent quality and value, I'll be an early adopter!
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