Ocado Group PLC (LSE:OCDO) will cut the price of organic vegetables and household essentials in its latest bid to attract new customers.
The UK online grocery joint venture, where Marks and Spencer Group PLC is a 50% owner as a result of a 2019 deal, is hoping that selling avocado and kale as loss-leaders will put it at an advantage compared to other supermarkets as the cost of food continues to rise.
Ocado Retail chief executive Hannah Gibson said prices will be cut for the third time since June, adding 330 new household essentials to its Big Price Drop scheme.
Avocado and kale, as well as branded essential items such as Tropicana orange juice and Colgate toothpaste, will be included in the price drop.
“We’re working hard to add even more items to the Big Price Drop so that alongside our amazing service and unbeatable choice, our customers are getting reassuringly good value too through competitive prices and Ocado Price Promise,” Gibson said.
Annual inflation in food and non-alcoholic beverages eased slightly at 14.9% in July 2023, after recording the highest annual increase for more than 45 years this March, according to the latest data from the Office for National Statistics.
The price of certain items like cheese, which registered a 23% annual price increase in July, continues to rise at a higher rate than average.
In August, more than half of adults were spending more than usual to complete their normal household shop due to rising food prices, according to the ONS.
Aldi and Lidl offered the lowest prices in August, beating Asda, Tesco, Sainsbury’s, Morrisons and Ocado, which came seventh in the list of best-value grocers, making it cheaper than its former supplier Waitrose, according to the latest Which? survey.