Waitrose is discussing a so-called third-party deal similar to the one Iceland has struck in recent weeks. Photo: David Parry/PA
Waitrose is in talks to sell groceries through Amazon as it tries to regain market share lost due to the cost of living crisis.
A couple are considering a partnership years after the John Lewis-owned supermarket ended their relationship. with Ocado to go it alone online.
Waitrose and Amazon are discussing a so-called third-party deal, similar to the one struck by the Icelandic frozen food company in recent weeks.
Amazon sells a full range of Icelandic products and offers free same-day grocery delivery for its Prime members. The Iceland on Amazon service is being trialled initially in Greater Manchester before being rolled out more widely in the UK.
Amazon also has agreements with both the Co-op and Morrisons, where their products are sold on its website and are delivered by an American company from local stores. When Co-op initially trialled the service in some stores in late 2021, it said Amazon accounted for more than 15% of in-store sales.
Waitrose's share of the grocery market has fallen from 5.1% to 4.6% since the start of 2020, according to Kantar. When the Ocado deal came to an end, it had a 4.9% market share.
Analyst Clive Black of Shore Capital says the Amazon deal could «markably expand Waitrose's online reach» if it is executed well . He added: «As long as it doesn't cannibalize Waitrose's own online sales, it could boost sales in the mid to high digits at specific stores.»
Talks between Waitrose and Amazon are ongoing and there is no certainty they will result to the deal. Both sides declined to comment.
It comes as Waitrose steps up efforts to attract more shoppers. Last month The Telegraph reported that Waitrose was considering moving some stores to better premises as part of a push to increase its market share.
James Bailey, chief executive of Waitrose, said the supermarket was launching a campaign to increase its market shares. its stores are better.
He said: “For the last two or three years, due to Covid-19 and cost of living issues — and a bit before that — we've had to be careful about the shops we go into. investment.
“The partnership is now in a position where it can now reinvest in this shopping complex and we have some really big, well thought out plans for how we go back in time.” That could include moving stores to more modern buildings, he said.
The move comes as consumer confidence rises, giving Waitrose the chance to win back shoppers after months of losing market share to discounters.
< p>Mr Bailey said: “Every week shoppers are reconsidering where they go go shopping, and we attract even more of these customers back.”
He added that there are plans for «more partnerships so that people who like the product but can't access the brand can access it through someone else.» Waitrose already partners with takeaway delivery apps Deliveroo and UberEats.
Waitrose was forced to rethink its online strategy business in 2019 when Ocado ended its partnership and switched to M&S groceries. Waitrose products have been stocked at Ocado for almost two decades.
This has left Waitrose struggling to expand its own online division, especially during the pandemic when supermarkets were forced to close their doors.
While Waitrose said earlier this year, online grocery sales accounted for around 14% of total sales this year. It says shoppers place an average of around 168,000 orders a week.
A growing part of the demand for online groceries is for fast delivery, with minicab and bike couriers taking orders from Waitrose stores and delivering them in as little as A couple of minutes. 20 minutes.
In July, Waitrose reported that on-demand grocery orders were up 40% compared to the previous year.
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