Ocado plans to expand its own-brand product range significantly next year, introducing hundreds of new items.
- In 2024, Ocado added over 100 new products to its selection, reaching over 740 items by year-end.
- The expansion is fueled by a 12% increase in sales of Ocado’s own range, now accounting for over 10% of purchases.
- Research shows a strong consumer preference for own-brand products, emphasizing quality and value.
- Ocado’s revenue increased by 15.5% due to strategic enhancements in product offerings and service.
Ocado is gearing up for a major expansion of its own-brand product range next year, promising to add several hundred new items with a particular focus on seasonal lines. This strategic move comes in the wake of adding more than 100 new products in 2024, culminating in a total offering of over 740 items. Among the new launches are microfibre cloths and baked beans, showcasing Ocado’s commitment to diversifying its product portfolio.
The decision to expand the range is underpinned by a notable 12% rise in sales of Ocado’s own-branded items, which now comprise more than one in ten items in customers’ shopping baskets. Simon Hinks, Ocado Retail’s product director, highlighted the company’s dedication to accessibility and value, stating, “We know our customers love the Ocado Own Range for its quality and value.”
Consumer research conducted by Ocado, alongside Savanta, reveals a growing public demand for own brand produce. The survey, encompassing over 2,000 shoppers, found that 89% consider it important for supermarkets to offer a wide range of value products. Key items like dairy, meat, fish, and tinned goods have emerged as top choices for consumers opting for own brands during each shopping trip. This demand is predominantly driven by quality concerns, where half of the respondents consider it very important, while 31% have observed improvements in the quality of own-brand products.
Additionally, 72% of the shoppers expressed that they would continue to purchase own-branded items even if the economic climate were to shift unfavorably. This consumer loyalty underscores the potential success of Ocado’s strategy to expand its own-brand product range.
Ocado’s strong financial performance reflects its strategic efforts. The company’s revenue surged by 15.5% to reach £658 million in the 13 weeks leading up to September 1. This growth is attributed to the company’s continued focus on providing an extensive selection, exceptional service, and competitive pricing, reinforcing its market position.
Ocado’s strategic expansion of its own-brand range aligns with consumer preferences, promising further growth in the market.
