Ocado’s share price has jumped by more than six per cent this morning amid rumours that the firm will team up with Marks and Spencer to deliver food.
Last week, M&S chief executive Steve Rowe confirmed that a team was investigating a food delivery trial for the autumn. Subsequently, reports emerged that Ocado was in line to partner with M&S when it moves into food delivery.
M&S has not confirmed the rumours. However, investors are clearly hoping that a deal with Ocado goes through; at one point this morning, the e-retailer’s shares were up by as much as eight per cent.
As part of the five-year agreement between the two, Dobbies will be able to use Ocado’s technology and logistics network.
However, analysts are unconvinced the sharp share price rise was to do with the Dobbies deal. Independent retail analyst Nick Bubb said Ocado was “unlikely to get rich by selling gardening products online for Dobbies”.