M&S may sell food online (and not just it's own)

Shoppers may be able to get their weekly groceries online at Marks & Spencer under plans being considered by the store.

Although supermarkets such as Tesco and Sainsbury's have offered internet shopping for some time, M&S spokesmen have previously said a web store wouldn't be viable for the company.

It sells a limited range of 3,000 own-label products and delivering only a few items to each customer would make setting up distribution centres and fleets of delivery vans too expensive.

However, if families could do their weekly shop at the online store, the scheme would be more affordable.

So, in a move that would break a century of tradition, the company's internet store could offer non-M&S brands, its commercial director of food suggested.

At an industry networking event, Jim Waller explained that selling groceries online was "the way to become more than just a top-up shop".

Analysts believe offering brands such as Heinz Baked Beanz, Pepsi and Whiskas alongside the premium M&S range would be a commercial winner.

The company is understood to be considering an arrangement similar to that between Waitrose and its online partner Ocado, a separate commercial enterprise.

Mr Waller said: "Whether we do it with a partner is up for consideration. We can't afford to bury our heads in the sand about online. But if you're going to put together an online operation, you need to provide a full grocery offer."

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He gave no time scale, but said the service is unlikely to roll out this year as setting up a delivery network would be complex.

An online food store is one of a number of ideas, including cost-cutting efforts, to revitalise M&S at a difficult time on the High Street, Mr Waller added.

About 70 per cent of its sales come from premium ready meals. But the company fears that if shoppers' finances are squeezed, they may turn to cheaper rivals.

Mr Waller said: "The credit crunch is hitting people's wallets and that is hitting us. We have to deal with people who say Tesco Finest is good enough, do I need to do a second shop?"

Plans to press ahead were revealed at an industry event and published in The Grocer magazine. It appears Mr Waller was unaware that the trade publication was recording his comments and consequently expressed remarkably frank views.

"We should be the best product on the market," he said. "I don't think that every time we give that to the consumer because we've been concentrating on other things for the past two years."

In what appeared to be a criticism of the regime headed by chief executive Sir Stuart Rose, he added: "We've grown complacent and fat. We need to change that and find cost savings."

The popularity of grocery shopping will continue to grow for another decade, believes James Roper, of web retail body IMRG.

He said: "The big grocery shop takes up half a day a week. Working people are reluctant to lose their weekends to food shopping."

M&S denied plans to sell groceries online. It said: "We consider lots of things all of the time. There is no prospect in the short term that we will be going online with food."

Mr Waller's comments on M&S's "complacency" represented his own views and not those of the company, a spokesman added.