Waitrose open virtual shop
By Elizabeth Smythe
20/04/2011
Waitrose are opening an online supermarket in direct competition with rivals, Ocado, for the London market, reports Financial Times.
The up-market supermarket chain are going to open a "dark store" - effectively, a store without customers - from which online orders can be fulfilled and dispatched. Waitrose staff will walk the aisles and select products as per the online requests, creating a virtual shop.
Ocado currently sells Waitrose produce in response to orders placed via automated IT software on the internet. It is the latest indication that Waitrose is attempting to beat Ocado in the race for "supremacy in the online upmarket grocery market", says the Financial Times.
A clause in the Ocado contract allows Waitrose to deliver items for any of the stores within the M25.
This follows the recent revision of Waitrose's website and the rebrand of its delivery service to Waitrose.com. The company reportedly spent £10 million on the transformation.
Managing Director, Mark Price explained the decision to The Independent: "The density of population and rapid growth of online shopping in London calls for an additional approach to e-commerce to ensure that we offer our customers the same standards of service that they've come to expect from our branches".
Tesco and ASDA are already using "dark stores" and Sainsbury's is apparently considering using the model also.
Ocado said it was "delighted" at Waitrose's expansion, according to BBC News, adding "in areas where Ocado and Waitrose operate together, both brands grow faster".
