British supermarket chain Morrisons expanded its deal with Ocado Group, so that it can ramp up its online presence even more. Customers all across the United Kingdom will soon be able to order online.
Better conditions
Morrisons will now get space in Ocado’s new warehouse in the southeast of London, while it will also be able to use the online grocery service’s technology to enable online grocery deliveries from its own stores.
The new deal also gives Morrisons better conditions, as it no longer has to give Ocado a share of the online profit, while the company’s contribution to Ocado’s research has also been lowered.
As it expands it online presence to the entire United Kingdom, Morrisons does expect its online division to generate a loss next year, while it had forecast to be break-even this year.
For Ocado, the deal is good news, as it can safely build a new distribution center. Thanks to the Morrisons deal, it managed to generate 74 million pounds (86.5 million euro) last year.
