Waitrose plans to double online business with Ocado supply deal ending

Waitrose & Partners has confirmed that its commercial arrangement with Ocado will come to an end in September 2020, in line with contractual terms.

The grocery group has been supplying Ocado with both branded and own-label products since 2000.

Rob Collins, Managing Director of Waitrose & Partners, said, ‘We have strengthened our own online business significantly and said last summer that we will double Waitrose.com within five years.

'This announcement will be a major part of achieving this and in future Waitrose.com and our shops will be the exclusive places in the UK to buy Waitrose & Partners products.'

Online grocery market growth stand at 3.2% (Kantar data, 52 weeks to 27 Jan 2019), and Waitrose.com online grocery business grew by 14.2% in the same period. Waitrose.com delivery service was launched in 2000 and now delivers directly to 81% of active UK postcodes.

Collins continued, ‘Waitrose.com sales are growing at 14.2%, well ahead of the market, and customer satisfaction scores for both fulfilment and the website are showing sustained and significant increases too.

‘We are planning a second fulfilment centre to support our growing volumes in London and will be able to welcome thousands more online customers to Waitrose from the end of this year.

‘We have valued our relationship with Ocado and thank them for the last 19 years.’