FastLane on The Prospective Merger Between M&S and Ocado

Ocado and High Street super brand Marks & Spencer have recently been subject to rumours that they will be teaming up to deliver their customer’s groceries. The move would be something of a godsend for both companies. M&S, whilst enjoying great success in general, has found its online grocery division suffering in recent months. While Ocado has been recently divorced from Waitrose and has come off third best in a messy menage au trois with Morrisons.

Ocado and Marks & Spencer Merging

FastLane International’s head of consumer research, David Jinks MILT, puts Marks & Spencer’s dwindling online sales figures down to a failure to embrace the trend for convenience with online shopping. Mr. Jinks claims that this is due to M&S Primarily focusing on catering for parties and events instead of day-to-day grocery shopping that the likes of Amazon, Tesco and Asda have embraced.

David goes on: “Sainsbury’s’ new Chop Chop same day/one hour deliveries, Amazon’s Prime Now 1-hour food service, and Morrisons’ expanding Amazon tie-in all point to the future of grocery sales. M&S badly needed to improve its grocery delivery offering.” And who better than Ocado? The online delivery brand complete well over 150,000 orders per week and in 2015, exceeded £1bn in annual sales.

Marks & Spencer’s philosophy well and truly lies in convenience. They are well-known for quick-fix style meals such as ready meals, sandwiches and meal deals. With delivery giant Amazon now offering 1 hour deliveries, it would make sense for Ocado and M&S to follow suit according to Mr. Jinks. “Ocado offers the capacity to deliver just such a service,” in short; there is much scope for both brands to up their game and attempt to take a bigger bite out of the ever-evolving pie that is grocery home delivery.

Mr. David Jinks also believes there could be a subscription service in the wings of this prospective partnership. Either way, this future looks bright for all involved should these two big food brands decide to come together.

 

 

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