{"id":7960,"date":"2019-02-27T08:38:38","date_gmt":"2019-02-27T08:38:38","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/ms-and-ocado-to-start-home-delivery-service-next-year\/"},"modified":"2019-02-27T08:38:38","modified_gmt":"2019-02-27T08:38:38","slug":"ms-and-ocado-to-start-home-delivery-service-next-year","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/ms-and-ocado-to-start-home-delivery-service-next-year\/","title":{"rendered":"M&S and Ocado to start home delivery service next year"},"content":{"rendered":"\n
\n
<\/p>\n

\"M&SImage copyright<\/span>
\n Getty Images<\/span><\/p>\n

<\/span><\/p>\n<\/figure>\n

Marks & Spencer and Ocado have confirmed a deal which will give the High Street retailer a home delivery service for the first time.<\/p>\n

M&S will buy a 50% share of Ocado’s retail business for \u00a3750m.<\/p>\n

The joint venture will be called Ocado and will deliver M&S products from September 2020 at the latest, when Ocado’s deal with Waitrose expires. <\/p>\n

Under the deal Ocado will also continue to supply its own-label products and big name branded goods. <\/p>\n

M&S will fund the deal by selling \u00a3600m of shares and by cutting its dividend payout to shareholders by 40%.<\/p>\n

“We think we’ve paid a fair price,” said Steve Rowe, M&S chief executive.<\/p>\n

“It’s the only way we could have gone online within an immediately scalable, profitable and sustainable business,” he said. <\/p>\n

He added that one third of M&S business would be online in the future. <\/p>\n

M&S shareholders were sceptical – shares fell 8% following the announcement, while Ocado rose by 8%. <\/p>\n

Basket sizes<\/h2>\n

Neil Wilson, chief markets analyst at Markets.com, questioned whether the value of a shop with M&S was big enough for online shopping. <\/p>\n

“Basket sizes at M&S are extremely small relative to other larger supermarkets and significantly below the current Ocado minimum for delivery. <\/p>\n

“I would also query whether M&S can retain the current Ocado customer base who are used to getting Waitrose products. There is a high risk of customer leakage as consumers rotate to Waitrose’s in-house delivery service.” <\/p>\n

Ocado founder and chief executive Tim Steiner told the BBC of the 50,000 products it currently sold, about 4,500 were Waitrose branded. <\/p>\n

When the new joint venture is up and running these would be replaced by more than 4,500 M&S products, he added.<\/p>\n

Commenting on the deal, Waitrose managing director Rob Collins said the supermarket chain had strengthened its own online business “significantly” and that it planned to double Waitrose.com within five years. <\/p>\n<\/p><\/div>\n


\n
Source<\/a> by [author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Image copyright Getty Images Marks & Spencer and Ocado have confirmed a deal which will give the High Street retailer a home delivery service for the first time. M&S will buy a 50% share of Ocado’s retail business for \u00a3750m. The joint venture will be called Ocado and will deliver M&S products from September 2020 … <\/p>\n","protected":false},"author":0,"featured_media":7961,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-7960","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7960","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=7960"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7960\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/7961"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=7960"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=7960"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=7960"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}