Marks and Spencer to pair up with Ocado and deliver food to Brit homes


M&S is considering a “joint venture” with Ocado in which it would pay the online giant up to £900million for a 50% stake.

The partnership could be announced as soon as tomorrow and sees M&S join its grocery rivals with an online delivery business.

Most of its rivals already deliver food ordered online to Brit homes – but this deal would see M&S join the party.

M&S store and Ocado delivery van

GROUNDBREAKING: M&S is set to join up with Ocado (Pic: GETTY)

M&S store

ALL CHANGE: M&S could be set to start delivering grocery to homes (Pic: GETTY)

Rumours of a tie-up emerged this morning before M&S confirmed “it is in discussions with Ocado Group plc regarding a joint venture in UK Retail”.

But it added: “There is no certainty that these discussions will result in any agreement or as to the timing of any such agreement.”

The deal, however, would see Ocado dump existing partner and M&S’s rival Waitrose.

M&S store

JOINING THE PACK: M&S’s rivals have long been involved in home delivery (Pic: GETTY)

Ocado van

NEW DAWN: The partnership would end Ocado’s tie up with Waitrose (Pic: GETTY)

Reacting to confirmation that the companies are in talks, retail analyst Bruno Monteyne said M&S could be a useful partner for the launch of Ocado Zoom, a one-hour delivery service.

“Ocado Zoom could be a major growth path for Ocado,” he said.

“We believe the food of M&S (ready meals, quality food) is perfectly suited for this more upmarket convenience shopping. M&S would boost the potential of Zoom in the UK.”

Ocado delivery van

READY, SET… The deal between M&S and Ocado could be announced tomorrow (Pic: GETTY)

Ocado delivery van

FULL STEAM AHEAD: The move would see M&S use Ocado to deliver grocery (Pic: GETTY)

The news comes just weeks after Ocado was named Britain’s best online supermarket with M&S named the second top high street grocer.

In a report, Ocado came out on top for online shopping, receiving five star ratings for delivery slot availability, range of products and drivers’ service.

The talks also come just weeks after a fire destroyed Ocado’s distribution centre at Andover, one of its four UK centres which handles around 10% of customer orders.


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