Ocado’s share price has rallied today amid speculation that the online grocer could pen a deal with Marks & Spencer.
The latter’s chief executive, Steve Rowe, said last week that M&S was “carefully” reviewing the prospect of launching its food offer online and was eyeing “a soft trial” in the autumn, kicking the rumour mill into overdrive.
Ocado has long been attempting to flog its Ocado Smart Platform technology to overseas retailers, only to struggle to find a willing bedfellow.
However, its perfect partner could be closer to home. Tie-ups with British grocers are now a possibility, after a renegotiated deal with Morrisons allowed the etailer to speak to retailers outside of the big four.
The five-year contract Ocado announced with Dobbies Garden Centres is far from the major partnership its boss Tim Steiner has been hanging his hopes on for two years and pressure continues to mount on the business to do a deal.
But with the online grocery market in the UK being far more advanced than it is in the majority of other markets, partnerships with the likes of M&S and the discounters might prove to be more attainable goals for Ocado.
Elsewhere today, one retailer that is already working with Ocado, Morrisons, slashed prices on more than 1,000 products and value fashion chain Pep&Co revealed plans to replace up to a sixth of its standalone store estate with shop-in-shops inside nearby Poundlands.
Quote of the day
“It’s always a long journey to regain the trust of your customers. Even if you are at the top, the work is never-ending”
– Tesco chief customer officer Alessandra Bellini on the road to rebuilding the grocer’s reputation
Today in numbers
10
The number of standalone stores Pep&Co could replace with shop-in-shops inside Poundland stores.
Tomorrow’s agenda
Supermarket giant Sainsbury’s takes centre stage in the City as it unveils its full-year results, while Kantar publishes its latest grocery market share data.
Luke Tugby, head of content
No comments yet