Ocado adamant it is not selling a stake to Morrisons

ONLINE supermarket and delivery group Ocado, which has a large distribution base in Warwickshire, says it is continuing talks with supermarket giant Morrisons.

But it said the discussions do not involve Morrisons acquiring either the whole of, or an equity stake in, Ocado.

It is hoped the talks may lead to Morrisons setting up an online business that Ocado would help operate.

Ocado said if its discussions with Morrisons lead to an agreement this would be complementary to its existing partnership with Waitrose.

“Product would continue to be sourced with Waitrose and Ocado customers would continue to buy exclusively from the existing Ocado, Waitrose and branded ranges,” it said.

In a statement ahead of today’s AGM the firm said: “Ocado has continued to make significant progress as the chairmanship passes from Lord Grade to Sir Stuart Rose.

“The company has continued to grow sales as it benefits from increasing loyalty and spend from existing customers and attracts new shoppers, supported by further expansion in customer demand for online grocery shopping.”

In February operations commenced at Ocado’s customer fulfilment centre at Dordon, Warwickshire, which opened on time and on budget, and this will provide the operational platform for significant future growth,” the firm suggests.

“The board is encouraged by the progress of the business so far this year and believes the company is well placed to exploit the fast growth in online grocery retailing,” it said.

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