Morrisons’ sales and their online service

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MBS’ retail expert, John Pal, looks at Morrisons’ sales and their online service

Morrisons might be late to the world of online but their tie-up with Ocado is one which may reap rewards later on; that is something the company must be hoping for.  It is also playing catch up in the convenience space and all these costs will have to be borne somewhere.  This means margins may suffer or we may see increased prices.

As all the major grocers move online we may see an increase in prices generally as customers will soon have to start paying the true costs of picking orders for click and collect and also for home delivery.  As these costs rise it will be interesting to see how much consumers will be prepared for this added convenience, or whether retailers will increase prices in store to potentially subsidise some of the costs of an online operation.

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About Author

John Pal is a Senior Lecturer in retailing at Alliance Manchester Business School. A regular guest on the likes of BBC Breakfast, BBC Radio 5 Live and The Today Programme, John specialises in corporate retail failure, retailer lobbying, retail location and general retail management.

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