Analysis: As Morrisons downsizes online, is the ecommerce food binge over?

Morrisons delivery van outside a pub called The Greyhound in the UK

Morrisons is scrapping store picking for online grocery deliveries from 50 of its supermarkets – a move that raised many an eyebrow following the rapid surge in ecommerce demand during the Covid-19 pandemic.

The supermarket giant’s decision to scale back its workforce in that division stands out as an incongruous marker compared with the last 18 months.  

After the pandemic hit, all of the big-four grocers, as well as the likes of Iceland and Waitrose, focused on ramping up ecommerce capacity in a bid to keep pace with the spiralling growth in online grocery demand. But that appetite has now begun to subside – a point made by Morrisons itself. 

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