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Ocado likely to help Marks and Spencer with e-commerce launch

08 May 2017 - 10:32 by Graham Miller

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Last week online grocery firm Ocado was reported to be in the process of striking a deal with Marks and Spencer to help the bricks and mortar giant to engage with the e-commerce market, according to BBC News.

After these rumours surfaced there was an unsurprising surge in the price of shares in Ocado, signalling that many would be in favour of this move.

Industry insiders expect that Marks and Spencer will not only rely on the underlying logistical tech which is currently used by Ocado to handle orders placed online by its own customers, but will also harness its distribution facilities throughout the UK to deliver food.

While neither firm was willing to comment on these plans, it is presumed that a small scale trial involving each organisation will take place in the near future before a wider rollout is pursued.

It was also announced this month that Ocado will be working with another retailer, this time Dobbies Garden Centres, to provide the underpinning infrastructure that will allow for its own e-commerce launch.

While it may surprise consumers to see that several significant brands have yet to enter the world of shopping online, it is clear that the growth of this market has occurred in some areas while leaving others relatively untouched.

The half-decade contract Ocado has secured with Dobbies could catapult the retailer ahead of its competitors with spokesperson, Nicholas Marshall, describing garden centres as being much further behind other outlets when it comes to embracing the web.

There were concerns that Ocado would find it harder to maintain its position in the market because of emerging competitors, including Amazon. But its new contracts with established firms could help it to continue growing in the coming years.