M&S set to trial online grocery service

Marks & Spencer (M&S) is looking to trial an online grocery shopping and delivery service this autumn. In a statement sent to Post&Parcel by M&S today (2 May), chief executive Steve Rowe commented:

“We continue to review Food online carefully.

“It has not cost us anything over the last five years by not being online with food. Our customers haven’t moved yet, but they will and we need to ensure that we are ready with the right response,” Rowe was quoted as saying.

“There are unanswered questions over what this means for M&S and we have a team looking at this now with a view to undertaking a soft trial in the autumn.

“The economics of food online are not straight forward and it is not something that we are going to rush into until we have substantial customer insight and a better understanding of what is right for M&S and right for our customers.”

Customers can already buy “party food” online – but this is for collection in M&S stores. M&S does offer deliveries for wine and “gift foods” such as chocolate, sweets and hampers. Offering a broader grocery delivery service will bring M&S more in line with competitors such as Tesco, Sainsbury’s, and Morrisons, as well as the online specialists Ocado and Amazon.

Meanwhile, on 20 April, M&S announced that it is updating its UK store estate – and there is a strong focus on food and groceries. The company is proposing to close six stores, but also looking to open 36 new stores in the next six months. Thirty-four of those 36 new outlets will be “Food stores” (which can include stores branded ‘M&S Foodhall’ and ‘M&S Simply Food’ and franchise stores branded ‘M&S Simply Food’ and ‘M&S Food To Go’).

UPDATE

A report in the Sunday Telegraph suggested that M&S might be considering a tie-up with Ocado in order to roll out a grocery delivery service. However, sources have told Post&Parcel that this is “just speculation”, and there has been no official comment from either M&S or Ocado.