ADVERTISEMENT
Online & DigitalSupermarkets

M&S signs £750m delivery deal with Ocado

Marks and Spencer has announced the creation of a new joint venture with online supermarket Ocado which the two companies say will “transform online grocery shopping for UK consumers”.

Under the new venture, M&S is acquiring a 50% share of Ocado’s UK retail business, which will be supported by Ocado Smart Platform, for a total consideration of up to £750m, including a deferred consideration of up to £187.5m, plus interest.

The venture will trade as Ocado.com but benefit from access to M&S’ brand, products and customer database from September 2020 at the latest, following the termination of the current Waitrose sourcing agreement.

This will be the first time M&S food is available for delivery.

Steve Rowe, M&S CEO said: “I have always believed that M&S Food could and should be online. Combining the strength of our food offer with leading online and delivery capability is a compelling proposition to drive long-term growth.

“Our investment in a fully aligned joint venture with Ocado accelerates our Food strategy as it enables us to take our food online in an immediately profitable, scalable and sustainable way. This is a transformational step forward in shaping the future of M&S and in becoming a truly digital first retailer with at least a third of the business online.”

Tim Steiner, Ocado CEO added: “We are delighted that our UK retail business will become a joint venture with M&S. This is a transformative moment in the UK retail sector with the combination of two iconic and much loved retail brands set to provide an unrivalled online grocery offer.”

Back to top button

Please disable your ad-blocker to continue

Ads are the primary way in which publishers generate the revenue needed to pay their staff. If we can't serve ads, we can't pay journalists to write the news.