Morrisons have new boss and weigh-up Ocado deal
One of the first things Watts is looking at is Morrison's £216m deal with Ocado. It looks like the supermarket might be ditching them.
You may or may not know that Morrisons and Ocado struck a deal in 2013, where basically, Ocado delivered groceries for Morrison's. The deal is 25 years long. However, the whole thing is a bit of a mess. For some reason, orders are taken by Morrison's, which is then delivered to Ocado warehouses, who then ship it out themselves.
You'd think it'd be easier for the supermarket to just deliver the bloody things themselves. However, that was a deal done by Dalton Philips, the old boss who got ousted last month. Ocado have been saying that this deal is break-free and safe as houses. Recently, Ocado's finance direction Duncan Tatton-Brown, said that, even if a new regime tried to get out of the deal, they weren't worried: "It’s not something we would necessarily expect and we’re protected by the contract anyway."
So things look like they're about to start changing at the supermarket. They shouldn't get too cocky though; David Potts and his new chairman - Andrew Higginson - are both formerly of Tesco. And what shape are Tesco in currently? Exactly.
Either way, they've got their work cut out for them because Morrison's revealed that they'd had the worst sales of any of the major supermarkets over Christmas, and total sales have fallen. The company are cutting prices again, but does anyone care?