Ocado Retail is offering “the lowest milk price in the market” it claims, after extensive price-cutting activity across branded, Ocado own-label and M&S items.
The online supermarket today reduced the price of four pints of Ocado own-brand milk by 10p to £1.45, and its two-pinter by 5p to £1.20. The move comes just two months after Ocado last dropped its milk prices, which fell in April by the same amount, in line with supermarket rivals.
Milk is among more than 100 items to have been reduced in price, by an average of 10%, with several products now costing a quarter less.
“At Ocado, customers are at the heart of everything we do and we want to give them great value on the products which matter to them the most, whether that’s large brands, Ocado own-brand or M&S,” said Hannah Gibson, CEO of Ocado Retail.
While inflation in supermarket milk prices has begun to ease, it is still far more expensive than a year ago. According to latest ONS data, semi-skimmed milk has seen among the largest increases in grocery prices over the year to May, up by an average 28%. Whole milk has seen increases of 21%.
Ocado is working hard to improve consumer perceptions over its prices. The price-cutting effort comes in addition to the online supermarket’s Price Promise, which launched earlier this year and compares prices against 10,000 like-for-like products on Tesco.com. If a customer’s shop would have been cheaper at Tesco, they receive money off their next shop.
“Together with the Ocado Price Promise, cutting the prices of these 100 essentials means we’re even better value, alongside the service, range and quality which our customers love,” Gibson added.
The retailer in May launched a nationwide TV advertising campaign to promote the initiative.
According to Which? analysis, Ocado has the lowest price inflation of the major supermarkets, with annual inflation for the three months to May at 10.4%, considerably lower than the 16.9% seen at Asda or 24.7% at Lidl.
In March, Ocado Retail posted modest first-quarter growth despite smaller basket sizes as order numbers and prices increased. In the face of a cost of living crisis, the retailer said it was “investing in great value for customers”.
As part of the price cuts launching today, double-digit percentage reductions have taken effect on products such as Lurpak Garlic Butter (–25%), 100g of Ocado Grated Parmesan (–16%) and Ocado Seeded Rolls (–17%).
Additionally, more than 60 reductions reflect recent price cuts at M&S – which this month unveiled reductions on family staples and many of its most popular lines – and include products such as Greek-style yoghurt, salmon fillets, avocados, ciabatta rolls and tortilla wraps.
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