Ocado has launched a new ad campaign this week emphasising its branded pricing credentials against Tesco.
It placed ads in the Guardian, The Times, the Independent and the Evening Standard that led with the message “Ocado. Prices worth checking out”.
The ads, which first ran on Wednesday as Tesco was announcing its disappointing UK results, claimed Ocado had found the cost of branded products in its shoppers’ baskets to be lower than at Tesco in 66% of orders.
“We believe you should be able to shop for a fair price without compromising on quality or service,” said an Ocado spokeswoman.
Kantar Retail analyst Bryan Roberts said convincing shoppers it was competitive on price would be crucial. “They do suffer from the perception that you are paying over the odds at Ocado - something of a misapprehension,” said Roberts.
Ocado’s sales growth has slowed in recent quarters and average basket size has also slipped. To boost sales and encourage bigger orders, the retailer has begun selling gardening products on a dedicated section of its website.