Ocado pays 5p per plastic bag returned by customers

Plastic bags from other chains will also be collected, but customers will only be refunded for Ocado bags returned.

The used bags are sent to a recycling plant where they turned into are pellets used to make new bags.  

The move comes as Ocado continues to benefit from virus-induced “stay at home” orders. 

Last month it reported that total sales soared by a third to £2.3bn for the year to November. The business posted pre-tax losses of £44m, down from £215m last year.

This strong retail performance was offset by increased investment in its robot warehouse technology business, as well as spending on hiring more staff and retooling its website to cope with the surge in demand.

Ocado shares fell 1.7pc to £21.01 in afternoon trading, valuing the company at £15.7bn.