Is Ocado Just Marks and Spencer?

Many shoppers assume Ocado is just an online extension of Marks & Spencer (M&S), but is that really true? While Ocado has a major partnership with M&S, its business model is much more complex. Unlike traditional supermarkets, Ocado operates as a technology-driven online grocery retailer, offering products from various brands, not just M&S.

So, is Ocado just M&S, or is there more to it? This article explores Ocado’s relationship with M&S, its wider business model, and how it operates both as a retailer and a global technology provider.

What is Ocado? A Quick Overview

Ocado’s Origins and Growth

Ocado was founded in 2000 as a purely online grocery retailer—a unique concept at the time. Unlike Tesco, Sainsbury’s, or Asda, Ocado does not operate physical stores. Instead, it uses a digital-first model, relying on robotic warehouses and advanced logistics to fulfill online grocery orders.

• 2000: Ocado is launched as an online grocery service.
• 2002: Begins delivering Waitrose-branded products under an exclusive partnership.
• 2010: Ocado goes public on the London Stock Exchange.
• 2020: The Waitrose partnership ends, and Ocado switches to Marks & Spencer (M&S) as its primary grocery supplier.
• 2024: Ocado operates both as an online supermarket and a technology provider, supplying automation solutions to retailers worldwide.

Ocado’s Business Model: More Than Just a Supermarket

Ocado is not just a grocery retailer—it’s also a technology company. Unlike competitors like Tesco, Sainsbury’s, or Morrisons, Ocado focuses on two major business areas:

1. Ocado Retail (Online Supermarket):
   • Runs Ocado.com, offering a wide range of groceries including:
     • M&S products (ready meals, bakery, fresh food).
     • Branded groceries (Coca-Cola, Heinz, Nestlé).
     • Ocado Own-Brand items.
   • Operates without physical stores, using robotic Customer Fulfillment Centres (CFCs).
2. Ocado Solutions (Technology Business):
   • Develops and licenses automated warehouse technology to global supermarkets.
   • Partners include Kroger (USA), Coles (Australia), Sobeys (Canada), and Casino (France).
   • Focuses on AI-driven logistics, delivery optimization, and robotics.

Is Ocado Owned by Marks & Spencer?

Ocado and M&S: A Strategic Partnership, Not Ownership

In 2019, Ocado signed a £750 million deal with Marks & Spencer, making M&S the exclusive supplier of Ocado’s grocery range. However, this does not mean M&S owns Ocado.

Key facts about the Ocado-M&S deal:

• Marks & Spencer owns 50% of Ocado Retail, the grocery delivery arm of Ocado.
• M&S does not own Ocado Group, which includes Ocado’s technology business.
• Ocado operates independently in logistics and global automation solutions.

Thus, Ocado is not “just M&S”, but rather a multi-faceted company with a strong M&S partnership in the UK.

Does Ocado Sell Only M&S Products?

No—while M&S is a major supplier, Ocado offers a much broader grocery selection, including:

Category	Examples of Brands Available on Ocado
M&S Products	M&S fresh food, bakery, ready meals
Branded Groceries	Heinz, Kellogg’s, Coca-Cola, Nestlé
Household Essentials	Fairy, Andrex, Dettol, Finish
Frozen & Fresh Foods	Birds Eye, McCain, Ben & Jerry’s
Ocado Own-Label	Ocado-brand milk, pasta, snacks

Ocado stocks over 50,000 products, making it a full-scale online supermarket, not just an M&S store.

What Makes Ocado Different from Other Supermarkets?

1. No Physical Stores – Fully Digital Shopping Experience

Unlike Tesco, Sainsbury’s, and Asda, Ocado does not have any brick-and-mortar supermarkets. All orders are placed online and delivered directly to customers’ homes.

2. Advanced Warehouse Technology & Logistics

• Ocado operates robotic fulfillment centers (CFCs) where AI-powered machines pick, pack, and dispatch grocery orders.
• This automation reduces errors, improves speed, and increases efficiency.

3. A Wider Range of Products Than M&S Stores

• While M&S stores focus on food and clothing, Ocado offers a broader selection, including:
  • Frozen foods, fresh produce, and organic options.
  • Household goods, kitchenware, and pet supplies.
  • International and specialty food brands.

Comparison: Ocado vs. Marks & Spencer

Feature	Ocado	Marks & Spencer (M&S)
Ownership	Independent, M&S owns 50% of Ocado Retail	Fully owned by shareholders
Business Model	Online supermarket + tech provider	Physical stores + online presence
Grocery Selection	M&S + branded groceries + Ocado own-brand	M&S-branded food only
Technology	Advanced robotic warehouses	Traditional supply chain
Global Presence	Expanding via international tech partnerships	Primarily UK-based with some international stores

Why Do People Think Ocado is Just M&S?

1. The Ocado-M&S Deal Was Highly Publicized

• The 2020 transition from Waitrose to M&S was widely covered in the media, leading to confusion.

2. M&S Foods Are Heavily Promoted on Ocado’s Website

• M&S products often dominate Ocado’s homepage and ads, reinforcing the misconception.

3. M&S’s 50% Stake in Ocado Retail Creates Confusion

• Since M&S co-owns Ocado’s UK grocery business, many people assume it owns all of Ocado.

Does Ocado Have Plans Beyond M&S?

1. Expanding Own-Brand Product Range

• Ocado is investing in its own-label groceries, competing directly with major supermarket brands.

2. Growing International Technology Business

• Ocado is licensing its warehouse automation technology to retailers worldwide.
• Partnerships with Kroger (USA), Coles (Australia), and Sobeys (Canada) show Ocado’s global ambitions.

3. Future Partnerships with Other Retailers?

• Some industry experts speculate that Ocado could expand beyond M&S, adding more supplier partnerships in the future.