Morrisons to stop deliveries from Ocado's Erith fulfilment centre

(Sharecast News) - Grocery logistics tech firm Ocado Group has announced that Morrisons is to cease deliveries from its customer fulfilment centre (CFC) in Erith, giving Ocado Retail extra network capacity over the near term. Morrisons, which currently shares fulfilment capacity with Ocado Retail at two Ocado Group CFCs in Dordon and Erith, said it has decided to process a greater share of its online deliveries through Dordon and with in-store fulfilment.

Ocado Group, which owns 50% of Ocado Retail - with the other half owned by Marks & Spencer - said Ocado Retail is continuing to grow "robustly" and is approaching full capacity in its current network, so this decision provides "an attractive option" for the retailer.

Ocado Group's chief executive Tim Steiner said in a statement that the decision enables Ocado Retail to pursue short-term growth "without an expectation for additional capex".

"As Morrisons reduce their operations at Erith and build their volumes in other parts of the network we are working with them to ensure seamless continuity of service to their customers and to continue strong market share growth across the UK market with the Ocado Smart Platform."

Morrisons Rami Baitiéh said it would continue operations as usual with no impact to customers.