Monday 11 March 2019

M&S Deal Could Cost Ocado A Large Chunk Of Customers

A survey of 250 Ocado customers carried out by analysts at HSBC found that 22% would no longer shop with Ocado if it did not sell Waitrose products, while 17% stated they would not use it if the Waitrose products were replaced by M&S lines.

David McCarthy, head of consumer retail research at HSBC, described the findings as “worrying” for the new Ocado and M&S joint venture. “A meaningful proportion of customers said that their loyalty is to Waitrose and that M&S is not an adequate replacement,” he wrote in a research note. [more for NamNews readers]
  • Its called brand loyalty, folks…
  • …whether it be supplier or retailer.
  • Hopefully Ocado will have factored this into the equation in advance…
  • …and can live profitably with the difference.
  • Watch this space…

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