Marks & Spencer records £87.6m loss but says Ocado tie-up has started well

M&S today gave the first indication of how its tie-up with Ocado, launched on September 1, is going. It replaced Waitrose to become Ocado’s main grocery supplier and is poised to benefit from high demand for online orders in the run up to Christmas.

The firm has created over 750 new lines including in grocery and homecare to broaden appeal both on Ocado and in store, where around 450 of these products are now also available.

The firm said: “The customer response to switchover was overwhelmingly positive with demand for the new range driving both an increase in the number of products in customer baskets and strong forward demand.”

Chief executive Rowe said the partnership has "fantastically”, and added that customer demand is there. 

The boss said:  "In a year when it has become impossible to forecast with any degree of accuracy, our performance has been much more robust than at first seemed possible.”

He added: “But out of adversity comes opportunity and, through our Never the Same Again programme, we have brought forward three years change in one to become a leaner, faster and more digital business. From launching M&S Food online with Ocado to establishing an integrated online business division 'MS2' to step-change growth, we are taking the right actions to come through the crisis stronger and set up to win in the new world."

Trading in the first four weeks of the second half has continued at similar rates to the end of the second quarter, with food revenue up 3%, clothing and home revenue down 21.5%.

M&S, which in August announced plans to cut 7000 jobs, will be able to keep stores open for the second lockdown which starts tomorrow. But it added that “there remains significant uncertainty regarding the near-term outlook in relation to both Covid and Brexit”.