Marks & Spencer set to reveal first signs of boost from its Ocado tie-up after major collapse in clothing sales
Marks & Spencer is set to reveal the first signs of a boost from its Ocado tie-up after a major collapse in clothing sales.
This week, M&S is expected to post losses of £59million for the six months to late September, with same-store clothing revenues plunging 41 per cent after shops were forced to shut during the lockdown.
Bright spot: Clothing sales dive at Marks & Spencer but food deliveries see a boost
However, the chain’s joint venture with online grocery specialist Ocado is likely to prove a bright spot. Analysts forecast that it is doing better than originally thought.
The Ocado delivery option is expected to be highlighted in the M&S Christmas TV advert this year.
Under the tie-up launched on September 1, M&S replaced Waitrose as Ocado’s main grocery supplier. Ocado has already sold out of Christmas delivery slots. Supermarkets are expected to enjoy a bumper holiday season with the closure of restaurants and pubs pushing up festive spending on food for home consumption.
Meanwhile, M&S’s Simply Food arm has been hit by a dearth of commuters.
Chief executive Steve Rowe has slashed 7,000 jobs and ramped up the focus on online sales in a strategy dubbed Never The Same Again. He has also beefed up his executive team.
Mike Yorwerth, a former Tesco technology chief, will join in January as chief technology officer from FTSE100 distribution group Bunzl. Stuart Ramage has been poached from Dixons Carphone as head of digital strategy and innovation.