Ocado tell Morrisons to wind their necks in
We reported that Morrisons was looking at ditching Ocado, however, things are not that simple. They never are for a supermarket like this, which doesn't know it's arse from it's elbow.
Ocado has warned the retailer that they can't start its own internet operations because they're tied into a deal with Ocado for 25-years. We hope Ocado then delivered some hard cheese to Morrisons' HQ.
Duncan Tatton-Brown, Ocado’s finance director, said: “Ocado is the exclusive provider of online grocery services for Morrisons. That is the terms of the deal for the remaining 23 years. The contract will prevent [Morrisons] launching another service.
“If [Morrisons] want coverage elsewhere in the UK they have to come through us. We are happy to have that discussion. The decision is theirs. Who provides it is us.”
Morrisons is now under new management, which means the new gaffer David Potts has got a bit of headache regarding this Ocado deal. Getting out of their contract won't be cheap, should they want to go it alone.
Potts is a busy bee at the moment too, selling off the M convenience shops, which were opened by his predecessor, Dalton Philips. Aside from the fact that Dalton Philips sounds like a suave diamond thief, David Potts must curse the day Philips was born, every working week.