Driving the online proposition through our leading customer offer

The online grocery market is expected to experience significant growth at the expense of traditional grocery channels, and adoption is influenced by a number of complementary drivers.

Why customers choose to shop online for groceries

The Ocado Way

1

Range

Access to a wider choice of groceries online than at a nearby store

Range

At full capacity we will be able to stock up to 40,000 grocery skus in one location. This is over 50% more than a typical large supermarket

We will be able to stock a bigger grocery range than any other UK supermarket. This reduces the need to shop elsewhere. Our range includes products with different price points in the same category to appeal to different customer wallets.

2

Price

Save money by shopping online

Price

We now1 price match the largest competitor on over 8,000 skus

The automation and aggregation of our model strips out costs and increases efficiency. These savings allow us to offer products at compelling prices. We work hard with our suppliers to provide market leading promotions for our customers.

1 March 2012

3

Freshness

Buy the freshest produce online

Freshness

The product life of all our fresh products is guaranteed

Our model removes one stage of the grocery supply chain. This combined with rapid stock turn means we often get product to customers the same or next day following receipt into our warehouse. This can be quicker than other supermarkets get the product to their stores. We offer a life of product guarantee giving confidence to customers that their groceries have a minimum remaining life when delivered.

4

Ease of use

Convenient, quick and easy to use

Ease of use

20% Of all our checkouts now1 made using mobile apps

In-house software development allows for rapid introduction of new functionality. We were the first grocer to launch a fully transactional mobile app, offering increasing convenience to the customer. The shopping experience could not be easier from ordering anytime anywhere to delivery in the narrowest delivery time window in the market.

1 End January 2012

5

Availability

Convenient next day delivery with very high stock availability

Availability

More than 95% of our range is available for next day delivery at any one time

Proprietary integrated systems give control over the product flow. This, combined with the scale of our warehouse, leads to structurally higher product availability. This reduces the chance of products being out of stock and minimises substitutions.

6

Reliability

Consistent order reliability - on time and as ordered

Reliability

Over 98% of items are delivered as ordered

The combination of our centralised model and our proprietary software leads to unrivalled reliability. Our systems have evolved following much iteration, to integrate all aspects of the customer fulfilment process.

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