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Ocado in talks with M&S over distribution collaboration - reports

Ocado in talks with M&S over distribution collaboration - reports

Online supermarket specialists Ocado is holding secret talks with Marks & Spencer to deliver its food & drink, according to reports.

According to the Daily Mail on Sunday, a tie-up between the two food retail giants could mean that M&S may buy key distribution centres, delivery vans and lorries from the online food retailer.

A City source told the newspaper that M&S chairman Archie Norman is under pressure to overturn a performance of poor sales, which has led to ongoing cuts and plans to close 100 stores by 2022. The unnamed source said: “The deal on the table is effectively buying the Waitrose part of the Ocado business and replacing it with M&S products.”

Ocado currently has a contract with Waitrose until September 2020. A deal with M&S would potentially end Ocado’s tie-up with the John Lewis Partnership brand.

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