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Ocado shares managed to climb this morning by a much as 9pc, this is due to the fact that the online grocer is hoping to secure a technology deal with Marks & Spencer.
The Sunday Telegraph reported that Ocado and Marks & Spencer were thinking of a partnership to launch online grocery deliveries.
The two companies are set to begin talks in the coming weeks. M&S is considering Ocado as just one option to meet online customer demand for its food products.
Ocado shares were up 17.4p, or 6.8pc, to 268p in mid-morning trading. M&S shares also climbed 1.4p, or 0.4pc, to 368p.
Bruno Monteyne, analyst at Bernstein, believes a “store pick” solution is the most likely option for M&S: “Typically M&S customers shop smaller baskets, serving customers in the ‘something-for-tonight’ or ‘top-up’ shopping missions rather than the ‘main shop’,”
“The economics of central fulfilment are hugely in favour of bigger baskets.”
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