Blog: How can the Ocado deal give Morrisons second mover advantage?

Next week brings Morrisons’ trading update and the expected deal announcement of a partnership with Ocado to kick start its food.com operation.

While a deal is good news in one way as the City will finally see some movement on its online grocery plans, it also seems like it could have been done years ago.

Morrisons invested in New York online grocery operation Fresh Direct, singing its praises and saying it can learn so much from it. Years have passed and Morrisons has probably realised that New York is a very different entity to anything in the UK and while it must have been very interesting to see behind the scenes of the company, there isn’t much that can translate.

It also bought Kiddicare, along with its brains and technical expertise, and has made good headway with its online non-food operation, including Morrisons Cellar.

But instead of leapfrogging the rest of the grocers, getting a second mover advantage, it is now in advanced talks with Ocado to fulfil this missing part of its business.

It seems like Morrisons has gone around the houses slightly and it’s hard to see how a partnership with Ocado will leapfrog the competition. Unless there is more to the deal than we know.