Yahoo Finance Marks & Spencer reboots M&S Energy through Octopus tie-up
Marks & Spencer is joining forces with Octopus Energy to revamp its energy supply business, marking another step in the high street retailer’s overhaul.
M&S has struck a deal for challenger Octopus to supply energy under the M&S Energy brand after its nine-year partnership with electricity and gas supplier SSE ended last week.
The move aims to challenge the dominance of the big six energy suppliers by offering an alternative to the so called “tease and squeeze” pricing policies, whereby new customers get cheaper rates because loyal customers pay more.
M&S said the rebooted brand will re-launch on September 29 with the bespoke Octopus cloud-based billing system and online customer service systems.
Jonathan Hazeldine, the head of M&S Energy, said the strategic partnership mirrors the retailers shift towards a “digital-first customer service”.
He said: “Together, we can challenge the traditional energy market and bring green energy to millions of households at a competitive and fair price.”
While many small suppliers are struggling to stay afloat due to rising energy costs, Octopus has quickly grown its customer base to over 200,000 in two years.
The supplier is backed by the Octopus Group which includes Octopus Energy, the UK’s largest solar investor, and Octopus Ventures which has backed other successful online startups including Zoopla, Graze, Secret Escapes and SwiftKey.
The retailer is making the move just months before SSE backs out of the embattled energy market by spinning off its supply arm to merge with Npower as a new listed energy company.
M&S revealed last month that it was turning to artificial intelligence in an attempt to sharpen its appeal to customers through a partnership with Microsoft.
The high street stalwart is working with AI experts at the US tech giant to explore how the technology could improve the shopping experience on the high street.
It is part of a major reboot under Mr Rowe designed to revive the company’s flagging fortunes.
M&S announced a five-year transformation plan last year aimed at “restoring the basics” and transforming its culture towards a faster, leaner and more digitally-focused business.
However, the overhaul has proved painful for the business. M&S was condemned to its second straight year of falling profits in May as it racked a huge bill for store closures.
