Morrisons in web link-up with Lakeland to sell kitchen goods

MORRISONS is teaming up with kitchenware specialist Lakeland to launch a new standalone website offering Morrisons’ 11 million customers Lakeland’s wide range of kitchen products.

This is the Bradford-based supermarket chain’s third foray into online non-food selling following the launch of MorrisonsCellar.com last November and the acquisition of baby care retailer Kiddicare.com in 2011.

Morrisons, which has been criticised for going upmarket and alienating core customers, denied the link-up would distance it further from its value credentials.

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“Lakeland offers expertise, a great range of products and great value across the range,” said a spokesman.

“They are very confident about their value,”

Lakeland claims to supply a wide range of kitchenware from everyday utensils and preserving basics to never-seen-before cookware.

It added that all of its products are “long-lasting and great value for money”.

However, some analysts see it as being a middle class brand.

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Darren Shirley, at Shore Capital, said: “Lakeland is more of an aspirational business that a lot of Morrisons’ customers won’t be attuned to.”

Morrisons will launch the new standalone website in the spring, bringing Lakeland to new customers as part of its non-food offering through the Morrisons.com website.

“It will be a key element of Morrisons’ website,” said the spokesman. “We think non-food is moving online. It’s part of our roll out of non-food products.”

The site will be co-branded but the name has not been disclosed.

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“We can launch these websites because we have the expertise of Kiddicare,” said the spokesman.

He added that Scott Weavers-Wright, Kiddicare’s chief executive and managing director of Morrisons’ online non-food, will head up the new venture.

“That was part of the strategy when we bought Kiddicare,” said the spokesman.

“We said we’d use the platform to roll out further non-core businesses.”

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The partnership is the latest step in Morrisons’ strategy of expanding its non-food business online to allow its supermarkets to remain focused on fresh food.

It is initially launching websites in areas that are close to food with its wine and kitchenware offerings.

Other web launches are expected over the coming months.

Lakeland has built up a reputation over the last 50 years for selling creative kitchenware.

It was one of the first retailers to launch into home shopping through its catalogue business, which started in the 1970s.

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Dalton Philips, Morrisons’ chief executive, said: “We believe the future for retailing many non-food products is online rather than in supermarkets.

“Morrisons customers are used to buying great fresh food and this venture will also ensure they can prepare it with great kitchenware from Morrisons.com.

“We decided to work with Lakeland because it has spent 50 years selling reliable kitchenware for cooks of all standards,” he added.

Sam Rayner, Lakeland’s managing director, said: “This is a unique opportunity for us to work closely with one of the UK’s leading grocers and we see a lot of opportunity in the links between our respective products and services.”

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Lakeland’s range of kitchenware will sit alongside Morrisons’ existing range of everyday essentials.

The spokesman for Morrisons denied that Lakeland’s new offer could cannibalise Morrisons’ range.

“They are very different products,” he said.

“We’re supplying basic kitchenware products that people are likely to pick up such as plates and cutlery.”

Initially, fulfilment of orders will be undertaken by Lakeland, but in time it will be done by Morri- sons.

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Unlike the other grocers that make up Britain’s so called ‘big four’ – market leader Tesco, Leeds-based Asda and Sainsbury’s – Morrisons does not have a website for the home delivery of food.

Earlier this month it posted a weak Christmas trading update that it partly attributed to its lack of an online food offer.

The firm is researching the possibility and plans to say more when it publishes full year results in March.

Most analysts expect it to launch a trial this year.

Morrisons was advised by Andy Brian, a solicitor in the corporate and commercial contracts teams of Yorkshire law firm Gordons.

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