Marks & Spencer completes acquisition of half of Ocado Retail Ltd
5 Aug 2019
Marks & Spencer Group has completed its acquisition of half of Ocado Retail Ltd, one of the world’s largest dedicated online grocery retailers.
The joint venture will see Marks & Spencer offering an online grocery delivery service for the first time, while Ocado shoppers will be able to shop over 6,500 Marks & Spencer food products via Ocado’s website.
In March, Marks & Spencer CEO Steve Rowe told The Telegraph that the new partnership could result in clothing being delivered alongside groceries and that while Ocado’s warehouses weren’t currently set up to deliver clothing, they stocked items such as Pretty Polly tights and knickers, meaning there was “potential to do something quite quickly”.
Additionally, Ocado Group Plc has appointed Melanie Smith, currently strategy director at Marks & Spencer, as CEO of Ocado Retail Ltd, effective 1 September. Lawrence Hene, currently the interim managing director of Ocado Retail Limited, will be appointed as deputy CEO for a transitional period before he moves back into a senior role within the Ocado group.
Marks & Spencer said it expected Ocado Retail Ltd to generate around 70 million pounds of synergies for Marks & Spencer Food by the third-year of the joint venture.
Photo credit: Marks & Spencer