Following the news the ‘Morrisons at Amazon’ online same-day delivery service is set to expand to more cities across the UK, Thomas Brereton, Retail Analyst for GlobalData, a leading data and analytics company, offers his view:
“The expansion of the rapid delivery store ‘Morrisons at Amazon’ to five more cities in the UK clearly demonstrates both the commitment from Amazon to gain stronger credentials in the UK grocery market and Morrisons’ desire to become a more prominent – and geographically renowned – online supermarket.
“Morrisons should feel confidence in this excellent move. Leveraging Amazon’s reputation and last-mile logistical capabilities will help it create a point of differentiation to its Big Four rivals, and will enhance its ability to attract the ever more demanding online shopper. And although four of the five cities are situated close to Morrisons’ main hunting ground of the North of England, promised expansion of the service into Portsmouth shows that Morrisons are looking to conquer more of the South.
“With the value of the online food market set to increase by 48.9% over the next five years – significantly higher than the 15.5% for the overall grocery market, according to GlobalData – it is understandable why Morrisons are looking to bolster growth figures through online expansion. However, it joins the end of a list of similar announcements from food retailers looking to capitalise on the fast-growing sector, with M&S launching a £750m joint venture with pureplay Ocado and Waitrose signing a deal with the mysterious TDP to forge a £1bn online business in three years’ time.”