Ocado stops all deliveries to staff after it “underestimated the demand for M&S food orders”

Ocado has paused all deliveries to its own staff as it scrambles to clear a backlog of orders following the launch of Marks & Spencer on its platform.

The online grocery giant told Retail Week that it would pause all deliveries to its own staff for the first few days of its new joint venture with M&S, which debuted this week.

It comes after Ocado was forced to apologise to customers after a “surge in demand” meant it had no choice but to cancel orders just hours before they were due for delivery.

READ MORE: Ocado apologises after it was forced to cancel orders on first day of M&S tie-up

The online grocer said that this only affected a “very small number” of customers, but it has been reported that the cancellations affects hundreds of shoppers, some of which had placed orders weeks before.

Staff orders have been cancelled until at least today to “help minimise the impact of the surge in demand on our customers”, after the retailer admitted it had “underestimated that demand for Marks & Spencer food orders”.

This is becoming a recurring theme for Ocado which has been dogged with capacity problems throughout the pandemic, leaving many customers without access to deliveries and preventing thousands more from signing up.

In July, M&S chairman Archie Norman warned customers that the lockdown spike in demand meant Ocado is continuing to operate “at capacity” and therefore will not be able to serve many new customers when the joint venture launched.

To tackle this issue Ocado has now pledged to increase capacity by 40 per cent by the end of 2021 through “significant” investment next year.

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Delivery / Supply ChainEcommerce

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2 Comments. Leave new

  • Amazing that people paid telephone numbers cant foresee these things. A small poll of my friends and they ALL stated that they felt M&S was more popular than Waitrose therefore expected the Ocado service to be more popular. Time for performance related wages only for those at the top of our large companies

    Reply
  • M&S is good for many things, but not the whole weekly shop. There was obviously going to be an initial mass ordering, and Ocado have handled that very badly. Thank goodness for my local Waitrose, who do their own deliveries, and have been wonderful to me and my husband, who is on the extremely clinically vulnerable register. I will stick with the – no question.

    Reply

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