Marks and Spencer food finally available for delivery thanks to new Ocado UK deal

The food delivery service has previously been working with Waitrose. However, Ocado have confirmed they will replace the brand with Marks and Spencer. M&S will acquire 50 per cent of Ocado’s UK retail business, in a deal costing up to £750 million. The companies have said the latest move will transform online grocery shopping.

The joint venture will trade as Ocado.com, but stock M&S-branded products.

It will also see them benefit from access to the supermarkert’s database of 12 million M&S food shoppers.

The online supermarket has previously had a long-running partnership with Waitrose, which was up for renewal this week.

The end of the relationship means Ocado will no longer pay sourcing fees to the food retail division of the John Lewis Partnership – which were in excess of £15 million last year.

The new venture looks set to launch by September 2020, if not before.

M&S boss Steve Rowe 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.”

Tim Steiner, Ocado’s chief executive, said: “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.”

M&S is set to issue new shares in a bid to raise up to £600 million, to finance the deal.

It has predicted potential cost savings of up to £70 million per year, due to increased buying scale, the conversion of customers, and joint marketing.

Elsewhere in Marks and Spencer news, the retailer made headlines earlier this month, having launched its new “Love Sausage” product.

The cheeky product was advertised ahead of Valentine’s Day.

The retailer wrote on Twitter: “Are you ready for our Love Sausage?

“Heart-shaped, lightly-truffled, wrapped in bacon and in store tomorrow.

“Say it with sausages – tag who you’ll be sharing your Love Sausage with this Valentine’s Day! #MyMarksFave.”

source: express.co.uk