Ocado launches own label webshop

The etailer, which is keen to establish its name as more than just a distributor for Waitrose products, opened the section of its site last week.

The section includes 450 of its 600 own label products, the majority of which are food, under ten categories including meat, poultry, fresh produce, eggs, bakery, household and flowers. The retailer will increase the range further this year.

Ocado has a sourcing agreement with Waitrose which allows it to sell Waitrose own label and branded products alongside Ocado own label branded products. Its contract is due for renegotiation in 2017.

The retailer already has a Wine Cellar shop-in-shop as well as a special section for gardening products.

Competition in the online grocery market is becoming increasingly fierce with Sainsbury’s taking Asda’s second position in reporting a 20% growth to £800m worth of sales in the last year on Wednesday. Tesco continues to lead the market and recently opened its fourth dark store in January.

Ocado is due to begin testing its second distribution centre in Dorden this summer and will ramp up its marketing to meet the new capacity.

The etailer has been running £25 off your first shop voucher deals as coupons continue to play a key role in grocery marketing.

A spokeswoman said: “Ocado is constantly seeking to improve its proposition for customers and one area of consistent customer feedback has been the demand for a broader own label range of foods.

“There is excellent customer take up of the Ocado Own Label and we are proud of both its quality and value. Ocado aims to become an emporium of food for its customers and popular new sub-categories to the Own Label range include: organic veg boxes, free range chicken, duck, veal and growing herbs.”