Morrisons seal online shopping deal with Ocado
Grocer to make first foray into online world - but how will Waitrose react to Ocado's deal with its rival?
MORRISONS has gone from a "standing start to the fast lane" after agreeing to launch an online shopping service with Ocado, its chief executive said today. Dalton Philips told the BBC the grocer was making an "important step" in joining the fast-growing online shopping world.
Unlike rivals Tesco, Sainsbury's and Asda, Britain's fourth-biggest supermarket has not offered an internet shopping service before. But Morrisons is attempting to turn around its flagging fortunes after reporting its first profit drop in six years last March.
The grocer said its website will have a clear "Morrisons look and feel" and that Morrisons.com will be delivering to customers by January 2014. It has agreed to pay £170m to acquire Ocado's distribution centre in Dordon, North Warwickshire and a further £46m to expand it in a 25-year deal.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
While Ocado said that the Morrisons deal would not affect its ongoing partnership with Waitrose, The Sun's business editor Steve Hawkes joked that Waitrose would be spitting out organic tea at the news. Days before the deal was announced The Times reported that the John Lewis business was prepared to take legal action against Ocado over its plans to help a rival. One Waitrose insider told the paper: "Why does Ocado think that Waitrose would be happy to see them introduce competition into the marketplace against the background of the agreement we have?" Waitrose Managing Director Mark Price told the BBC ahead of today's announcement: "I'll want to look really closely at that contract to see whether there is any breach of the agreement we have [with Ocado]".
Waitrose has not commented on the deal. But speaking this morning Philips said Morrisons "are confident we are not in breach of anything".
Both Morrisons and Ocado shares rose in early trading with Ocado's up by 25 per cent and Morrisons rising by 1.7 per cent.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
'It may not be surprising that creative work is used without permission'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
5 simple items to help make your airplane seat more comfortable
The Week Recommends Gel cushions and inflatable travel pillows make a world of difference
By Catherine Garcia, The Week US Published
-
How safe are cruise ships in storms?
The Explainer The vessels are always prepared
By Devika Rao, The Week US Published
-
Will Donald Trump wreck the Brexit deal?
Today's Big Question President-elect's victory could help UK's reset with the EU, but a free-trade agreement with the US to dodge his threatened tariffs could hinder it
By Harriet Marsden, The Week UK Published
-
What is the next Tory leader up against?
Today's Big Question Kemi Badenoch or Robert Jenrick will have to unify warring factions and win back disillusioned voters – without alienating the centre ground
By Harriet Marsden, The Week UK Published
-
What is Lammy hoping to achieve in China?
Today's Big Question Foreign secretary heads to Beijing as Labour seeks cooperation on global challenges and courts opportunities for trade and investment
By Harriet Marsden, The Week UK Published
-
John Lewis statue replaces Confederate monument
Speed Read The civil rights icon represented Georgia in Congress for decades
By Peter Weber, The Week US Published
-
Is Britain about to 'boil over'?
Today's Big Question A message shared across far-right groups listed more than 30 potential targets for violence in the UK today
By Sorcha Bradley, The Week UK Published
-
UK's Starmer slams 'far-right thuggery' at riots
Speed Read The anti-immigrant violence was spurred by false rumors that the suspect in the Southport knife attack was an immigrant
By Peter Weber, The Week US Published
-
How could J.D. Vance impact the special relationship?
Today's Big Question Trump's hawkish pick for VP said UK is the first 'truly Islamist country' with a nuclear weapon
By Harriet Marsden, The Week UK Published
-
The Tamils stranded on 'secretive' British island in Indian Ocean
Under the Radar Migrants 'unlawfully detained' since 2021 shipwreck on UK-controlled Diego Garcia, site of important US military base
By Harriet Marsden, The Week UK Published