Morrison's rejig to Ocado contract a 'red flag' for online grocery group - analyst
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Morrison Supermarkets has decided to reduce its use of Ocado Group PLC's robot-run warehouses, signaling a trend among grocery chains to scale back on online delivery expansion. Analysts at AJ Bell view this as a concerning sign for Ocado, especially following similar decisions by clients in the US and Canada.
November 28, 2024 | 1:00 pm
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Morrison Supermarkets' decision to reduce its use of Ocado's robot-run warehouses is seen as a negative development for Ocado, as it reflects a broader trend of grocery chains scaling back on online delivery services.
The reduction in use by Morrison, a significant client, suggests potential revenue impacts for Ocado. This decision is part of a larger trend of grocery chains scaling back, indicating possible future challenges for Ocado's business model.
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