Waitrose launches product overhaul in fightback against Ocado and M&S

The upmarket grocer’s long-standing deal with Ocado will come to an end in August, after the online retailer-cum-tech provider penned a joint venture deal with M&S.

Waitrose currently sells a selection of its own-label products on Ocado.com.

In a bid to keep hold of those online shoppers, the grocer is working on 5,000 new or reformulated products, according to The Guardian.

The figure equates to almost a third of its 17,000-strong own-label range across the No 1, Duchy and Essential Waitrose brands.

The grocer has invested millions in its kitchens at its Bracknell headquarters to help it come up with the new lines, while it has also launched a ‘You can taste when it’s Waitrose’ campaign to underscore its quality credentials.

The adverts will aim to help position the chain as the UK’s “leading quality food retailer” selling products that are “unrivalled on quality and taste” in the wake of increasing competition from upmarket rival M&S.

The latter is investing heavily in its food business at a time when its clothing and home division continues to struggle.

M&S is paying £750m for a 50% stake in Ocado’s retail division, which will enable it to sell groceries online for the first time.

Ocado claims its product range will be bigger, cheaper and better-quality under the M&S deal. It will stock 6,000 products compared to the 4,000 it sells under its supply deal with Waitrose.

M&S is also ploughing cash into launching a clutch of new format food stores, including those in Hempstead Valley, Clapham and Southampton. The stores feature a host of new features, such as urban farms, wine-tasting areas and fresh pasta concessions.

Waitrose had initially drafted in Today Development Partners, a tech business led by Ocado co-founder Jonathan Faiman, to help it run its online operations.

But Waitrose pulled the plug on the deal and said it would seek to grow its online business alone after it emerged that Ocado was suing Faiman over allegations of corporate espionage and conspiracy.