The Trader 

Market Outlook: Ocado rides high on M&S promise, G4S knocks back approach

Market Outlook: Ocado rides high on M&S promise, G4S knocks back approach

The question every Ocado shareholder has is whether the M&S tie-up will deliver. The answer so far, just a couple of weeks into the partnership, seems to be positive. Forward demand is strong, and management say adding M&S products has increased the average basket by around 5 items. We should question though whether the novelty of getting Percy Pigs in your online shop will last. Retail revenues – pre-M&S – accelerated from +27 per cent in H1 to +52 per cent in Q3 as the shift to online grocery continues apace, with the number of orders on a weekly basis up almost 10 per cent. UK grocery sales rose 10.8 per cent in the 12 weeks to September 6th, according to Kantar, which indicates Ocado is significantly outperforming. Shares in Ocado jumped over 6 per cent, whilst Marks & Spencer rose over 5 per cent to 110p. 

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