We don't just deliver shopping, we liberate our customers' time. We provide wider choice, save them money and free up their time to spend on the important things in life – which are usually not found in a supermarket. Powered by fresh thinking, we seek new and improved ways to deliver exactly what customers order, exactly when they want it, where they want it.
Our aim is to provide a market-leading proposition to our customers in terms of range, service and price and we are constantly reviewing our competitors to ensure we remain ahead of the game.
The Ocado Smart Pass helps drive customer loyalty by offering customers free deliveries and specialised discounts on selected products. This encourages customers to shop regularly at Ocado and therefore drives sales through our platform. Over 70% of our sales are now conducted through Smart Pass.
We recognise that customers shop in different ways, and aim to provide flexibility within our proposition to ensure it is suitable and convenient. Our service is supported across a variety of interfaces, from the Apple watch to mobile and tablet applications, to ensure customers can create and amend their orders on the go. We offer the flexibility of one hour delivery slots, seven days a week from 5.30am to 11.30pm, ensuring our customers can find a convenient delivery time to suit their schedules.
To enable easy shopping we analyse our interfaces and tools on our webshops to support customers' shopping habits. For example, during the year we launched our Ocado Regulars feature on our webshop. This enables shoppers to select any product within our range and incorporate it into their Regulars list so that it is automatically added at a given frequency of their choice (e.g. weekly/monthly) to their shopping list. This means that when they start their weekly shop at Ocado their basket will already be populated with the items they regularly buy and they can focus on what is special to them this week. This subscription-style trend and way of shopping is likely to continue over time with more and more products delivered automatically to us based on what the ever more powerful AI engines around us working out what we want and need.
Supported by market-leading technology and our centralised fulfilment model we are able to ensure a consistent and superior customer service with 95.0% on-time deliveries and 98.8% order accuracy. Our outstanding customer service has been acknowledged throughout the industry, and we recently were shortlisted for the European Customer Call Centre Award.
We aim to operate a competitive and transparent pricing policy for our customers. We price match our products to equivalent baskets of the market leader, Tesco.com, and communicate any price variances directly to the consumer with any negative variances refunded in the form of vouchers.
We have continued to offer a broader range than the market, and now offer over 49,000 SKUs on our Ocado.com webshop. This is far beyond what a typical supermarket, which is limited by space constraints, could provide. Alongside national brands, we stock our own and Waitrose private-label products as well as niche and speciality brands which would not typically be found in traditional supermarkets. Within the year we have extended our product range by adding new suppliers and shop-in-shops such as Hotel Chocolat and our vegan webshop allowing customers to further extend their shopping experience all on one website.
Our proprietary software and algorithms enable us to personalise the shopping experience to individual customers – displaying product ranges most relevant to them based on prior shopping history and preferences. We work with all our suppliers on how to best showcase their products to their target audience and enable greater visibility and prioritisation for suppliers who wish to have it through mechanisms such as banner advertising, dedicated "shop-in-shops", and personalised coupons for our customers. This helps target the right customers and provides rich data insight into shopping habits for our suppliers.
Alongside our traditional grocery range we also have a growing general merchandise business which now contributes over 7% of our retail revenueA. This includes the kind of traditional non-food categories you would typically find in supermarkets, which sit within our Ocado.com hypermarket, as well as our specialist destination sites: Fetch, our specialist pet shop; Sizzle, our kitchen and dining ware store; and Fabled in partnership with Marie Claire, our premium beauty store. Hosting these dedicated destination sites drives the range of products made available to us by niche suppliers and brands, allowing us to vastly extend our range beyond that of conventional supermarkets.
Suppliers and Operational Partners
Our suppliers range from large national brands to smaller, niche and speciality players as well as offering our private label selection to our customers. We currently work with around 4,300 different suppliers to service our Ocado hypermarket.
Since launching Ocado.com we have enjoyed a long-term sourcing agreement with Waitrose (part of the John Lewis Partnership). Our current contract runs to 2020. This combines our respective product volumes and growth profiles to improve supply terms for both parties, and enables us to sell Waitrose branded products on Ocado.com. We pay Waitrose a sourcing fee under the agreement and deal directly with suppliers for the majority of the range.
Where We Operate – Our Locations and Coverage
We operate a hub and spoke delivery network. We fulfil our orders through our three CFC sites in Hatfield, Dordon and Andover and plan to open our fourth and largest CFC next year in Erith, South London. Around a third of our orders are delivered directly from our CFCs, with the remaining being "trunked" to our spoke sites, where the orders are cross docked to local delivery vans and distributed to the surrounding areas. We have 17 spoke sites within our network and currently deliver to over 74% of UK households. Around a third of our geography have same-day delivery slot availability.
All numbers on this page are reported on a 52 week basis
See Alternative Performance Measures
- CFC 1 – Hatfield
- CFC 2 – Dordon
- CFC 3 – Andover
- CFC 4 – Erith (opening this year)
General Merchandise Distribution Centres
- GMDC 1 – Welwyn Garden City
- GMDC 2 – Erith (opening this year)
- Park Royal
- Milton Keynes
- West Drayton