Upmarket grocer Waitrose managing director Mark Price has said he is “really happy” with the retailer’s relationship with online grocer Ocado but did not rule out operating independently when their current contract runs out.

Waitrose signed a 10 year deal with Ocado last year, and Price said that while he is “really happy with the relationship” at present, did not rule out operating independently in the future.

Speaking at the Retail Week Conference today, Price said: “Who knows in the future,” he said. “In 10 years time we’ll sit down and do the maths.”

However he said that at present, having Waitrose products delivered by both Waitrose and Ocado enables the grocer to grow its market share in the online food market.

He added that the upmarket grocer will ramp up promotions this year in the face of falling consumer confidence.

Price said the downturn  has been “squeezing the middle”, due to wage freezes and tax rises,  and as a result consumer confidence is falling.

He said: “This year we’ll be keener than ever on prices and promotions.”

He added however that Waitrose would not be reducing quality or service as a result.

Price added that the model of Waitrose – which is part of the John Lewis Partnership –gives a sense of “collective responsibility”, which in turn brings commercial benefits.

He said: “Our partners own  the business and share in its success. Co-ownership gives a sense  of collective responsibility and brings a definite commercial advantage.” He said both staff turnover and illness are lower as a result.

He said the partnership model is the “underlying reason why we continue to perform well”.

He added that partners’ “happiness is at the heart” of Waitrose’s strategy.

Price said that he wants customers to view Waitrose as “aspirational” not posh. “That’s not what we’re about. We’re about great quality food.”

He highlighted Waitrose’s Essential line of value products, which was launched in the recession and now accounts for 18% of its £5bn sales. “When the recession took hold some analysts wrote us off. We showed a quality brand can not only survive but prosper in a downturn,” he said.

Waitrose will have 300 convenience stores by the end of the decade as it meets shifting consumer demands for a more convenient offering.

He said initial reaction to its Little Waitrose trial has been “very positive”, adding that the retailer will “make a roll out decision on that very soon”.

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