Business
Update on Morrisons partnership
Update on Morrisons partnership.
About this update from Ocado Group Plc
[{"type":"text","content":"\n \nRNS Number : 4440Y Ocado Group PLC 09 May 2019 \n\n9th May 2019\nOcado Group Plc\nUpdate on Morrisons partnership\n \n \nOcado Group plc (\"Ocado\") announces that it has reached agreement with Wm Morrison Plc (\"Morrisons\") for a temporary suspension of the Morrisons.com capacity at Ocado's newest Customer Fulfilment Centre (\"CFC\") in Erith, South-East London. \n \nFollowing the fire in CFC3 in Andover in February, Ocado has been seeking additional capacity within its existing network of CFCs to maintain the quality of the customer experience and to allow the business to continue to grow, while at the same time investigating the longer term steps to replace the lost capacity from CFC3. \n \nMorrison's agreement to temporarily suspend using Morrisons.com's share of the capacity in CFC4 at Erith gives Ocado additional capacity to grow and thereby mitigate the impact of the Andover fire. At the same time the parties will enable Morrison.com to continue to grow by fulfilling orders from Morrisons stores using Ocado's store pick solution. Morrison.com currently accounts for over 10,000 orders per week at Erith and has the right to 30% of CFC4's future order capacity. Morrisons.com will return to using its share of capacity in Erith in February 2021. During this period of suspension, Morrisons will not incur any of the costs associated with the use of CFC4 and will pay lower store pick fees. \n \nIn addition, both parties have agreed to a mutual relaxation of certain exclusivity provisions bringing Morrisons more in line with the terms agreed with our existing international Ocado Solutions clients.\n \nTim Steiner, Chief Executive Officer of Ocado, said:\n \n\"Morrisons is a valued partner of Ocado and we are glad that we have been able to come to an equitable and pragmatic agreement that is in the interests of both parties. We look forward to welcoming Morrisons back to Erith in February 2021\".\n \nDavid Potts, Chief Executive Officer of Morrisons, said:\n \n\"We are pleased to be helping our partner in times of need after the recent fire. We will keep growing Morrisons.com for our customers and save some cost, returning to the Erith CFC when it is more mature. \n \n\"Our new agreement allows us to have more than one digital partner, and opens the way for signifi...