Ocado and Morrisons first entered into an agreement in May 2013. Morrisons is one of the top UK grocery retailers in terms of market share and the first Ocado Solutions client.
Ocado provides Morrisons with automation technology, logistics, distribution services and an end-to-end online platform. This includes the webshop and mobile apps, the routing and planning software, the warehouse systems and head office systems needed to support and operate their online retail business.
Morrisons is operating online under its own banner, fully controlling its commercial strategy and offering its own assortment and branded products. Morrisons retains full control of its customers and business data, and defines all the customer facing aspects of its online proposition.
Morrisons initially agreed with Ocado to operate its online grocery fulfilment from a shared CFC in Dordon, near to Morrisons’ core customer base. Morrisons registered run-rate exit sales of almost £200m* and reached nearly 50% of UK population coverage after its first year of grocery e-commerce operations. By its third year of operations, Morrisons achieved a full year online turnover of over £300m*.
This exceptional growth is a testament to the unique advantages of the collaboration between a leading retailer and the best in class platform provided by Ocado Solutions.
In August 2016 Morrisons and Ocado extended the term of their agreement to share the capacity of a new CFC in Erith, 15 miles east of London. Since 2017, Ocado Solutions has also been providing Morrisons with the software required to fulfill customer orders from its store network via a store pick solution.
* Data based on Morrisons corporate results presentations