UK: Waitrose watching Morrisons and Ocado with interest
A Waitrose spokesman also pointed out that the company has the opportunity to break its long-running agreement to supply products to Ocado in 2017, raising the prospect that it could ultimately choose to focus on its own Waitrose Direct service.
Last week Morrisons chief executive Dalton Phillips confirmed that his company will follow the lead of its rivals and start selling groceries online by January 2014.
However, the announcement was overshadowed by leaked reports that the company is in talks with Ocado to license its proprietary technology, and possibly even capacity at its enormous delivery centres.
The news caused Ocado’s shares to jump 36 per cent and pleased analysts who have repeatedly urged the two firms to consider a tie-up or even a possible takeover.
Although Ocado is closely associated with Waitrose, it is a separate business that also delivers own-brand goods. Two years ago Waitrose relaunched its own website to compete with Ocado within the M25 area, raising tensions between the two companies.
Waitrose’s existing deal to supply Ocado with products is due to expire in 2020.
Source: cityam.com
