MSE News: Morrisons home deliveries begin in Midlands

Edwardia

The startup costs are huge unless doing it from your local store.

I do feel that the more high end stores will develop internet deliveries further because shoppers don't want to spend time schlepping round shops, they don't need to fight over YS bargains and they like a huge range of products.

Whereas shoppers who want offers, value and YS lines only will really only het that instore so delivering those kinds of products would make a loss for the supermarkets.

happybunny86

harz99 wrote: »

Yes, I saw that they are using central distribution instead of from their stores ala Mr T and Asda. To do the same around the UK is surely going to cost a bomb and not be as effective as either Mr T or Asda?

It's been proven that the ocado model is the best for delivering online shopping and customer satisfaction for many reasons such as availability, dark stores don't have to pay staff to pick the items, send driver to one area so not as inefficient fuel wise as you would imagine, automated picking so don't have pickets walking round the stores early in the morning when customers are shopping and don't steal stock away from in store customers if a customer buys a few items on an online shop etc.
Tesco and asda have watched the ocado model closely and seen it's better for customers and cheaper/more efficient for them so they have opened them too. Tesco have 6 now and asda 3 I think if you google it so it's the way it's going. Will limit where morrisons can deliver to for a while though until they have more.

happybunny86

Deleted_User wrote: »

Morrisons held off home delivery because it is not profitable for the other supermarkets. They have only caved in due to pressure.

This isn't true - they wouldn't be doing it if they didn't make any money from it..

"He said that Asda’s 15-year-old home delivery service is profitable and has been for several years. Some 12,000 staff pick 10 million items a week from 200 stores to support the service, while delivery vans drive nearly one million miles a week."
http://www.yorkshirepost.co.uk/business/business-news/asda-s-click-and-collect-service-to-expand-for-shoppers-on-move-1-5773347

[Deleted User]

happybunny86 wrote: »

This isn't true - they wouldn't be doing it if they didn't make any money from it..

"He said that Asda’s 15-year-old home delivery service is profitable and has been for several years. Some 12,000 staff pick 10 million items a week from 200 stores to support the service, while delivery vans drive nearly one million miles a week."
http://www.yorkshirepost.co.uk/business/business-news/asda-s-click-and-collect-service-to-expand-for-shoppers-on-move-1-5773347

So it's been going 15 years but only lately has it been profitable. My comment still stands.

geordie_joe

Deleted_User wrote: »

Morrisons held off home delivery because it is not profitable for the other supermarkets.

I agree, in the beginning.

Deleted_User wrote: »

They have only caved in due to pressure.

I very much doubt that, Morrisons don't cave in to pressure.

What they have done, is waited until the other stores have done all the hard work, working out how to turn an unprofitable delivery system into a profitable one, then started their own deliveries when they know how to run it profitably.

happybunny86

geordie_joe wrote: »

I agree, in the beginning.



I very much doubt that, Morrisons don't cave in to pressure.

What they have done, is waited until the other stores have done all the hard work, working out how to turn an unprofitable delivery system into a profitable one, then started their own deliveries when they know how to run it profitably.

Agreed...there is always going to be an initial investment for big projects. It is unlikely it's going to be profitable straight away but when you are making millions you'll make that investment to reap the rewards 10 years down the line.