Ocado has cut prices on a huge range of products as competition for online grocery spend tightens.

The online grocer has prices on around 600 items to make them 10% lower than equivalent products at Tesco Direct as part of its new Savings Pass.

Ocado is looking to shed its expensive image and attract cash-strapped shoppers with lower prices. The pass shows shoppers how much they are saving on each item when they sign up for the £8.99 a year card.

The etailer will announce its results for the year to November 2011 tomorrow. It is forecast to record total sales of around £600m, up from £551m in 2010.

Chief executive Tim Steiner is expected to unveil the price cutting move alongside figures displaying a decreasing reliance on original partner Waitrose.

Waitrose products now account for around 20% of Ocado’s range and 40% of total sales, down from 75% when the company floated in July 2010.

The contract between Ocado and Waitrose lasts until September 2020 although it can be terminated by either party as early as March 2017, so long as 18 months’ written notice is provided.

Last week finance director Andrew Bracey revealed he is to leave the company in April. He will be replaced by founder Jason Gissing in the newly-created role of commercial director.