Ocado Retail CEO Hannah Gibson has insisted that it has reduced prices to become a “supermarket for all,” despite its reputation as an upmarket grocer.
Speaking to The Sunday Times, she explained that the retailer had lowered its prices over the last 18 months, and that it now catered to a “much broader range of people”.
Gibson said: “When I started 13 years ago, our customers would have been wealthier, they would have been more foodie. I still think we absolutely cater for those people who have a bit more disposable income and who really care about the provenance, the quality, the new products and want to spend more on that.”
She added: “But we now cater to a much broader range of people who also want to get the 24-pack of crisps and to feed a large family.”
Gibson claimed Ocado was even winning over shoppers from discount chains Aldi and Lidl.
She said: “We can see from customers’ orders that someone will buy Ocado own-brand butter, for example, which will be basically the same price as Aldi and then trade up and get a duck breast from M&S. You make Ocado what you want it to be.”
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The exec admitted Ocado was previously “perceived as expensive” and that it “needed to address” its prices.
“We did need to bring them down and we have done that over the last 18 months,” she said.
The comments come after Ocado Retail slashed 3,800 of its prices in five sets of price cuts over the past year across its branded, own-brand and M&S items.
The supermarket narrowed its losses in its latest half-year results as it capitalised on more shoppers opting to order their groceries online.
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