Morrisons is redefining its online grocery fulfilment approach in partnership with Ocado.
- The supermarket will reduce reliance on Ocado’s Erith fulfilment centre.
- A shift to in-store processing using Ocado’s AI technology is planned.
- Morrisons aims to keep customer service seamless across the UK.
- Ocado sees potential growth with reduced pressure on Erith centre.
Morrisons is embarking on a significant change in its online grocery operations, marking a strategic partnership adjustment with Ocado. Previously dependent on Ocado’s Erith fulfilment centre in the South East, the supermarket will gradually phase out deliveries from this facility. This decision is part of a broader effort to reassess and optimise its online services.
Transitioning to an innovative approach, Morrisons plans to ramp up volumes processed at Ocado’s Midlands centre. Concurrently, they are expanding in-store fulfilment capabilities, leveraging Ocado’s cutting-edge AI-powered technology. This move is designed to enhance the efficiency and accessibility of their distinctive Market Street offerings to customers.
According to Morrisons CEO Rami Baitiéh, evolving towards in-store fulfilment systems grants customers complete access to their unique offerings without service disruption. He assures that Morrisons.com will continue to cater to all postcodes within England, Wales, and Scotland.
Ocado’s CEO, Tim Steiner, remarked on the thriving partnership, noting the use of world-leading technology to bolster their market prop up in the UK. As Morrisons strategically minimises operations at Erith, efforts are focused on ensuring uninterrupted service and aggressive market expansion. He further pointed out that the plan allows Ocado Retail to fully utilise existing capacities, offering growth prospects without additional capital expenditure amidst challenging market valuations.
In summary, while Ocado has faced hurdles, particularly post-pandemic with a drop in its market evaluation, the strategic pivot with Morrisons opens pathways for sustained growth and service improvements.
Morrisons and Ocado’s new strategy aims to optimise online groceries and amplify their market presence.
