Waitrose to treble online business

With previous online distribution partner Ocado striking a new £1.5bn deal with rival operator Marks and Spencer, Waitrose has announced its new online strategy.

  • The grocer has partnered with Today Development Partners (TDP), an ecommerce platform founded by ex Google and Ocado alumni

  • Waitrose is intending to develop three new customer fulfilment centres over the next 3 years to support Waitrose.com

  • TDP will help to develop the technology for the new automated CFC's

  • Waitrose management are targeting a £1bn turnover business in 3 years

SUPR view:

  • Investment in online necessary for Waitrose following the unwinding of their Ocado deal (Sep 2020)

  • Online offering alongside physical retailing crucial to maintain competitiveness as online provides:

  1. Increased sales

  2. Brand awareness

  3. Customer retention

  • Rivals Tesco and Sainsbury's operate efficient omnichannel distribution models with online orders fulfilled in stores

  • Waitrose omnichannel offering is less developed due to small sites and limited geographic coverage

  • Therefore Waitrose require a partner to assist with distribution