After many weeks of speculation retailer M&S has finally bagged food delivery joint venture with Ocado in a deal worth £750m.
M&S will now be able to deliver their food to customers homes for the very first time. M&S are to raise £600m from investors to pay for the 50/50 deal struck.
The new venture is expected to launch by September 2020, Waitrose are now dumped as their contract was to be renewed this week.
M&S chief, Steve Rowe said, “I have always believed that M&S Food could and should be online.
“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.”
Tim Steiner, Ocado’s chief executive said, “We are delighted that our UK retail business will become a joint venture with M&S. This is a transformative moment in the UK retail sector with the combination of two iconic and much-loved retail brands set to provide an unrivalled online grocery offer.”