Morrisons has revealed a new delivery deal with online grocery retailer and long-term partner Ocado to expand its home delivery service nationwide.
The big four supermarket’s online shopping service was formerly only available to around half of UK households. The latest deal with Ocado will enable Morrisons to double its UK-wide reach and also grow online profits as the supermarket targets a long-term future boost in profits of £100m.
The deal will also allow Morrisons to sell a wider range of non-food products on its online shopping site Morrisons.com.
David Potts, Morrisons chief executive, said: “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 for money. As a food maker and shopkeeper, we continue follow the customer and move towards achieving capital light, profitable growth online.”
Morrisons and Ocado first teamed up in 2013, enabling the supermarket to launch an online delivery business. Under the terms of the new agreement, Ocado will have fewer restrictions that prevent it from working with other retail groups and supermarkets.