Morrisons has extended the reach of its home delivery service with the launch of direct deliveries from stores in North-East England.
The new service will provide access to morrisons.com for around half a million shoppers, including the major population centres of Sunderland, Middlesbrough and Darlington. This a region currently beyond the reach of Ocado’s fulfilment centres which provide the backbone of Morrisons online service. A successful launch here is likely to lead to the rollout of the store pick model to cover other parts of northern England, western England and Scotland, which are important regions to Morrisons but not currently served by Ocado. As with Morrisons existing service, one hour delivery slots are offered to shoppers and a focus on freshness is a key aspect of the proposition. Customers will be invited to confirm the freshness of the products they receive before they accept them.
The development of a store pick solution for Morrisons by Ocado was announced almost a year ago. The agreement was part of a wider renegotiation of Morrisons contract with Ocado that also saw its profit share obligation with Ocado ended and allowed Morrisons.com to sell Ocado’s non-food range. Morrisons also agreed to take up capacity at Ocado’s Erith fulfilment centre that will open next year. Morrisons also now has a wholesale agreement with Amazon that provides it with an alternative route to market and it supplies products for delivery within an hour through Amazon Prime Now.
In its latest quarterly trading statement, Morrisons revealed that online contributed 0.5% to its 3.0% retail LFL sales growth, helped by the launch of its new flowerworld.co.uk website and a new seasonally relevant food-to-order offer for parties and special events. In addition, it reported continued growth from ‘Morrisons at Amazon’ as the service was extended to more London postcodes.