M&S announces £750m food delivery partnership with Ocado
- Credit: copyright ARCHANT 2017
Norfolk shoppers can now get M&S food delivered to their door, as Ocado has announced it is joining the company in a £750m joint venture.
M&S is set to acquire 50% of Ocado's UK retail business, in return for access to the retailer's database of 12 million M&S food shoppers.
The paid will continue to trade as Ocado.com, but will stock M&S products.
MORE: Dream Lodge holiday park operator saved from closure As a result, Ocado will end it's long-running partnership with Waitrose.
It is expected that the new venture will be able to launch by September 2020 at the latest, with the companies saying it will 'transform online grocery shopping'.
M&S is to issue new shares in a bid to raise up to £600m to finance the deal.
The high street retailer predicts potential cost savings of up to £70m a year to be achieved due to increased buying scale, conversion of customers and joint marketing.
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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.'