Morrisons, the UK’s fourth-largest food retailer, has snapped up a stake in US online grocer FreshDirect.

The UK firm has paid GBP32m (US$51.6m) for a “circa” 10% stake in FreshDirect, which supplies customers in New York, New Jersey and Connecticut.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

In recent months, Morrisons has faced speculation about its online ambitions in the UK and has been linked to Ocado, the internet grocer that listed last summer.

However, Morrisons said today (10 March) that the investment in FreshDirect would “play a key role” in the development of its online food business in the UK. Under the plans, FreshDirect is also set to receive a “minority economic interest” in the London online operation that Morrisons is planning.

Morrisons said FreshDirect shared its “strong focus” on “quality fresh foods, outstanding customer service and competitive pricing”.

The terms of the deal will see Morrisons CEO Dalton Philips join the FreshDirect board, while the UK retailer will send a team to the US to learn more about the online firm’s “profitable e-commerce model”.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Philips said: “I have seen retailers all over the world. Few have inspired me as much as the team at FreshDirect, a highly successful and profitable food retailer with a track record of terrific customer service. What we learn from FreshDirect will be invaluable as we plan our own profitable e-commerce business for the UK.”

FreshDirect founder and CFO Jason Ackerman said his firm and Morrisons had a “deep passion for great customer service and fresh food”.

He added: “This new partnership and capital strengthens our ability to support our strong growth and continued expansion.”