CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Ocado in talks with Marks & Spencer as Waitrose partnership nears end

The grocery delivery service is reportedly in talks with Marks & Spencer to deliver its products, with the company’s partnership with Waitrose nearing its end.

Ocado has held secret talks with Marks & Spencer over the prospect of launching its own food delivery service that could see its long-standing partnership with Waitrose come to an end.

Ocado has been synonymous with the Waitrose brand for the last 20 years, but the deal between the two companies is set to end on September 2020 – leaving the door open to rivals like Marks & Spencer to agree a new tie-up deal with the food delivery company.

Waitrose to part ways with Ocado

Several reports have surfaced that suggest that John Lewis Partnership, which owns Waitrose, is looking to part ways with Ocado, a company that it once held shares in.

The decision is the by-product of what has been a rather tumultuous relationship between the two companies, but the move is mostly driven by Waitrose launching and expanding its own delivery operation, making its partnership with Ocado redundant.

One of the founders of Ocado Jason Gissing once told the Guardian that its former owners at John Lewis were ‘a complete pain in the arse to deal with’ and that members from both companies frequently failed to see eye-to-eye.

Marks & Spencer to partner with Ocado

According to a report by the Mail on Sunday, a tie-up with Ocado is part of a wider plan by Marks & Spencer’s Chairman Archie Norman to change the retailers poor fortune of late. The report claims that the retailer is considering acquiring major distribution centres and delivery vehicles from Ocado to implement its new growth strategy.

Marks & Spencer’s decision to partner with Ocado is a deal that many analysts see as a long time coming, with the retailer one of the last in the sector to offer a food delivery service for customers.

The online grocery market was worth around £11.4 billion in 2018 and is expected to grow by 52% to reach £17.3 billion by 2023, according to data compiled by the food and grocery research organisation IGD.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Be ready to act on ECB opportunities

Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in 22 April 2021.

  • How might the next meeting affect the markets?
  • What are the key rate decisions to watch?
  • Why is the Governing Council announcement important for traders?

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.