Ocado’s M&S warning

OCADO has warned investors that its £750m tie-up with M&S could mean it has fewer customers.

The delivery company is ending a partnership with Waitrose as part of the deal. It said that some customers may stop using its service due to the switch.

M&S customers also typically buy fewer groceries than Ocado’s current users. In a document sent to shareholders ahead of a vote on the deal on May 10, Ocado said the joint venture would have made £30m in profit in 2018 if it had taken place in December 2017.

This is down from £86m made by Ocado’s retail business last year.