UK retailer Morrisons has remained tight-lipped over reports it is to debut its online grocery operations in Birmingham.
Morrisons, which will launch home delivery next year in a venture with Ocado, is understood to have picked Birmingham as its first location, according to The Daily Telegraph. It is the closest large city to Ocado’s warehouse in Dordon, which Morrisons bought for the service’s launch.
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A final decision, however, has not yet been taken, the publication noted.
The UK’s fourth-largest grocer, which has lagged its rivals in introducing an online service, expects to launch into the fast-growing channel in January.
Neither Morrisons nor Ocado would comment on the report.
Morrisons will pay up to GBP170m for the Dordon fulfillment centre under a sale-and-leaseback deal. The retailer will then spend another GBP46m expanding the site. The two sides have said they could look at building more centres in the future. Morrisons has set a target of achieving a profit from the venture within four years.
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By GlobalDataSince the talks with Ocado were made public earlier this year, some in the City have questioned why Morrisons would team up with another company and not enter the channel alone. CEO Dalton Philips, however, has insisted the deal is a “compelling” one for Morrisons and that teaming up with Ocado was “less risky”.
Philips has also claimed Morrisons’ would offer online shoppers something that was not available on the market. “The combination will be a strong fresh food proposition, delivered well. It’s not being offered out there in the market today,” he said last month.
