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:
Increased sales
Brand awareness
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