Ocado Retail has revamped its price-matching scheme with Tesco in response to the cost of living crisis.
From tomorrow (1 March), 10,000 Ocado products including its branded Own Range essentials will be compared against like-for-like products on Tesco.com. Customers will then be offered money off their next shop if their shopping would have been cheaper at Tesco, under the new Ocado Price Promise.
The new Price Promise compares prices and promotions on Tesco.com, including Clubcard deals. Eligible products, which include the Ocado’s Own Range essentials, will be labelled with a red £ sign on Ocado.com.
“At Ocado, everything we do starts with our customers and we know how important value is to them right now. We continue to support our customers by investing in price across branded and own-brand products,” said Hannah Gibson, CEO of Ocado Retail.
The policy is an extension of the digital retailer’s long standing Ocado Low Price Promise first announced in 2012, in which it pledged to beat the cost of more than 7,000 Tesco goods.
Under the initiative, Ocado provided customers with money off vouchers to meet the difference if a comparable Tesco basket cost less. It also matched promotions or special offers.
The new price promise means customers “can be sure they’re getting great value” Gibson added.
The announcement comes alongside the publication of Ocado’s Group’s 2022 annual results. Pre-tax losses widened to £500.8m in the 12 months to 31 December, from £176.9m the previous year.
Despite growing active customers by 13%, revenues at Ocado Retail – the group’s grocery joint venture with Marks & Spencer – fell 3.8% to £2.2bn amid a “challenging market”.
Average basket size fell from 52 items to 46 during the year as rising living costs squeezed household budgets.
Despite what was a challenging year, Ocado enjoyed its best ever market share in the 12 weeks to 20 February, taking an 11.3% share, according to the latest Kantar figures.
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