Ocado’s (LON:OCDO) share price is underperforming the broader market, even as the online grocer announced that it had completed its arrangements with Marks & Spencer Group (LON:MKS). The companies agreed earlier this year to form a joint venture, combining the online grocer’s retail business and the provision of branding and sourcing from the high street retailer.
As of 09:00 BST, Ocado’s share price had given up 3.64 percent to 1,164.50p, underperforming the broader market selloff, with the benchmark FTSE 100 index currently standing 1.75 percent lower at 7,277.22 points. The group’s shares have added more than six percent to their value over the past year, as compared with about a 4.7-percent dip in the Footsie.
Ocado and M&S wrap up deal
Ocado announced in a statement this morning that its arrangements with M&S had completed today, with the sale of 50 percent of the grocer’s retail business to the high street retailer. Following completion of the sale, Ocado has appointed Melanie Smith, currently Strategy Director at M&S, as CEO of Ocado Retail, and Lawrence Hene, currently the interim managing director of Ocado Retail, as deputy CEO for a transitional period before he moves back into a senior role within the online grocer.
“Ocado Retail’s future, as part of a joint venture with M&S, is full of opportunity. The new company will be able to offer customers even greater range, service, quality and value,” the online grocer’s CEO Tim Steiner commented in the statement.
Analysts on online grocer
The 13 analysts offering 12-month targets for the Ocado share price for the Financial Times have a median target of 1,200.00p, with a high estimate of 1,700.00p and a low estimate of 600.00p. As of August 2, the consensus forecast amongst 17 polled investment analysts covering the FTSE 100 group advises investors to hold their position in the company.