Ocado has completed the sale of 50% of its UK retail business to Marks & Spencer, marking the next step of the two company’s joint venture to enable M&S to offer and online grocery delivery service.
Ocado will not begin to sell M&S products until September 1st next year, providing Ocado Retail’s current agreement with Waitrose doesn’t end sooner.
As part of the agreement, Ocado has appointed M&S strategy director Melanie Smith as chief executive of Ocado Retail. Lawrence Hene, who is currently the interim managing director of Ocado Retail, has been appointed as deputy chief executive for a transitional period, after which he will move back to a senior role within Ocado.
Steve Rowe, M&S chief executive, said: “I have always believed that M&S Food could and should be online. The addition of Ocado to our family of businesses marks M&S’s first truly transformational step in shaping our future as a digital first retailer, as we combine the magic of M&S food with Ocado’s award-winning service to create a new and compelling proposition.’
