Supermarket giant Morrisons to start delivering to millions more people across Britain
New deal announced with online seller Ocado will see them move into the South West and Scotland
MORRISONS will start selling shopping online to millions more Brits.
The supermarket currently delivers food to parts of the North West and South East as well as South Wales.
But under a new deal announced with online seller OCADO it will move into the South West and Scotland before eventually covering the rest of Britain.
The store giant will also sell non-food items including LEGO and PLAYMOBIL.
Boss David Potts said the move would double the firm’s reach, giving it access to millions more customers.
He added: “The new investments in online growth are further examples of Morrisons building a broader business, and will allow millions more customers all over Britain to enjoy Morrisons’ good- quality fresh food and great value.”
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The agreement will see the grocer share Ocado’s order centre in Erith, South East London, for a reduced fee.
Meanwhile the online specialist is free to do deals with other supermarkets, though excluding TESCO, SAINSBURY’S, ASDA, ALDI and LIDL.
Morrisons came late to the online market signing a £170million contract with Ocado in 2013.
The firm then signed a deal with online giant AMAZON in February to supply food for its new AmazonFresh service.
Russ Mould, investment director at stockbroker AJ BELL, said yesterday’s deal would see Morrisons “compete more aggressively in the burgeoning home delivery sector”.
The news saw shares in Morrisons rise 1.86 per cent yesterday. Ocado’s stock surged by 6.77 per cent.
Analysts said Morrisons had negotiated a better deal financially, while Ocado would now have greater freedom to work with other grocers, in the UK and internationally.
SHORE CAPITAL hailed the negotiation as “good news all round”.
AmazonFresh launched in June in 128 postcodes across London, for members of its Prime subscription service.