Morrisons is shifting towards in-store fulfilment leveraging Ocado’s technology, marking a significant change in their partnership.
- The supermarket will reduce reliance on the Erith fulfilment center, ramping up operations in the Midlands.
- AI-powered in-store technology will be expanded across Morrisons’ network to boost online order processing.
- This shift addresses increasing demand for Morrisons’ online grocery services while maintaining national coverage.
- Ocado supports this transition to ensure continued service quality and market share growth.
Morrisons is undertaking a strategic shift by moving more of its online order fulfilment into stores, utilizing advanced technology from Ocado. This move signals Morrisons’ intention to recalibrate its online grocery strategy, focusing on in-store resources rather than external fulfilment centers.
Over time, the retailer plans to “gradually cease” operations at Ocado’s Erith centre in the South East. This change is aimed at streamlining logistics and enhancing efficiency by increasing reliance on the Midlands fulfilment center, which is better integrated with their expanding store network.
Morrisons will roll out Ocado’s AI-driven technology across its stores, allowing for more efficient processing of online orders. This development is part of a broader strategy to utilize in-store capabilities to satisfy the growing demand among online customers.
According to Morrisons CEO Rami Baitiéh, in-store fulfilment offers comprehensive access to their Market Street offerings without disrupting service availability. He reassured customers of continued high-quality service across England, Wales, and Scotland, ensuring geographic coverage remains unaffected.
Ocado’s CEO Tim Steiner highlighted the collaborative effort to adapt to Morrisons’ evolving needs, underscoring the importance of advanced technology in maintaining competitive advantage. He mentioned that this strategy allows Ocado to maximize its current infrastructure while avoiding significant new investments.
Morrisons and Ocado are embracing change to ensure seamless service and continued growth in the UK grocery market.
