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
