Ocado makes significant strides in expanding its own-brand product range, focusing on seasonal offerings.
- In 2024, Ocado launched over 100 new items, with a total exceeding 740 products available by year-end, including everyday essentials like microfibre cloths and baked beans.
- The company plans further expansion in response to a 12% sales increase in its own-brand range, now making up over 10% of customer purchases.
- Research by Ocado and Savanta highlights strong consumer demand for own-brand products, with emphasis on quality and value.
- Ocado’s financial performance remains strong, evidenced by a 15.5% revenue increase attributed to strategic product expansions.
In a strategic move to enhance its product portfolio, Ocado has introduced more than 100 new items to its own-brand range in 2024. By the end of the year, the online grocery retailer expects to have over 740 products, highlighting a strong focus on everyday essentials like microfibre cloths and baked beans. This expansion is driven by a notable 12% increase in sales within the own-brand category, which now comprises more than 10% of the items in customers’ baskets.
Ocado’s proactive strategy is in part a response to consumer research conducted with Savanta, involving over 2,000 shoppers. The findings reveal a significant shift in customer preferences towards own-brand products, with 89% of respondents citing a wide array of value items as crucial in their supermarket selection. The survey further indicates that dairy products, meat, and tinned goods are the most popular choices for own-brand purchases. Notably, 72% of shoppers express a willingness to continue buying own-branded items irrespective of economic fluctuations, underpinning the value perception associated with Ocado’s offerings.
Ocado Retail’s product director, Simon Hinks, highlighted the company’s commitment to offering a diverse range of high-quality goods suitable for all budgets. He emphasized the competitive variety Ocado offers, citing the nearly 50 different kinds of baked beans available, spanning from popular brands like Heinz to niche options such as Bold Bean Co. This breadth of choice is indicative of Ocado’s strategy to cater to diverse consumer needs and preferences.
The company’s robust financial performance further reflects the success of its strategic initiatives. In the 13 weeks leading up to 1 September, Ocado’s revenues surged by 15.5% to reach £658 million. This growth is ascribed to what the company describes as ‘continued momentum’ in providing unmatched product choice, excellent service, and reassuring value, framing Ocado not only as a leader in eCommerce but also a benchmark for online grocery shopping.
Ocado’s strategic expansion of its own-brand range and robust consumer demand signal a strong position in the evolving grocery market.
