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I’m not sure home delivery will replace physical supermarkets. I got the impression that they’re generally loss- making for the retailers and they’d much prefer to encourage customers back to the shops. I read somewhere that the typical Ocado order was around £100 but costs Ocado £120 to fulfill. It works for M&S because they have roped Ocado into a contract where Ocado carry the bulk of the loss. -
By David Peckham · Posted
Ocado stopped sourcing from Waitrose a few years ago. They now source from M&S and general brands. Waitrose have their own delivery service now. I don't know how well served SE22 is by it. Ocado offers for new customers are, or certainly were, really good, particularly in the run up to Christmas. I think I got 20%/15%/10% up to a maximum of £100 spend off my first three deliveries with no delivery charge or commitment to sign up for further deliveries. There wasn't a time limit, IIRC, so it was a great way of restocking heavy store cupboard basics and stuff for the freezer. -
Fair enough point, but does that not in a way make it even worse if they open a shop almost directly opposite another "family" business selling exactly the same type of products? -
As Occado source from Waitrose, and were their only deliverer at one stage, and as Waitrose do now deliver it may be they feel their reach in ED is sufficient to mean having a local outlet would not gain them sufficient additional sales to be cost effective. The movement to delivery rather than physical shopping during Covid has I believe substantially changed the grocery economics. So it may be that the High Street dynamic for physical shops has now changed.
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