Ocado takes on Tesco with price match promisePrice matching on brands starts tomorrow

11 March 2008

A price war looks set to break out between the online food delivery service Ocado, and Tesco.

From tomorrow, Ocado, which is backed by Waitrose, says it will price match Tesco for all branded grocery products.

The scheme will see price cuts on about a third of the lines sold by Ocado. This includes items such as Pampers nappies and Persil washing powder.

Waitrose own-brand

Ocado, which delivers Waitrose own-brand food and drink alongside branded products, admitted that it had made the move to counter consumer perceptions.

Tim Steiner, Ocado Chief Executive, said: ‘Ocado has a reputation for superior service and excellent quality, but we have been perceived as too expensive and out of reach of many households.’

In the most recent Which? test of online supermarkets, both Ocado (which is 25 per cent owned by parent company the John Lewis Partnership) and Waitrose.com topped our table for overall satisfaction, putting in five-star performances. And in our massive retailers survey, published in January, Waitrose came top of all the shops consumers told us about.

Which? retail spokesman Nick Cheek said: ‘This is excellent news for consumers who use or rely on the internet for their supermarket needs.'