Morrisons & Quadient: A Winning Partnership for Convenience and Growth

Morrisons, the UK-based supermarket giant, has recently announced a strategic partnership with Quadient, a global automation platform powering secure and sustainable business connections. This collaboration will see Parcel Pending by Quadient parcel lockers installed at 230 Morrisons Daily stores by spring 2025, enhancing the convenience and accessibility of parcel pick-up and return services for customers. This move aligns with Morrisons' strategic goals of expanding its convenience store network and enhancing its omnichannel offerings, ultimately driving footfall, boosting in-store sales, and improving customer experience.



The partnership with Quadient offers Morrisons several potential revenue streams and cost savings, contributing to the company's overall financial performance. By installing parcel lockers, Morrisons can:

1. Increase Footfall and Additional Purchases: Quadient's consumer research shows that more than half of consumers make additional purchases when visiting lockers hosted at stores. This increased footfall and additional purchases can lead to higher sales and revenue for Morrisons.
2. Generate Parcels Handling Fees: Morrisons could potentially charge a handling fee for parcels picked up or returned using the lockers, generating additional revenue.
3. Advertising Opportunities: The lockers could be used as advertising space, with Morrisons charging third-party companies for advertising on the lockers.

In terms of cost savings, Morrisons can:

1. Reduce Delivery Costs: By offering a parcel pickup and return service, Morrisons can help reduce the volume of delivery van journeys, leading to lower delivery costs for both Morrisons and its delivery partners.
2. Improve Operational Efficiency: The lockers can help streamline Morrisons' operations by reducing the need for staff to handle parcel pickups and returns, allowing them to focus on other tasks and improving overall operational efficiency.
3. Reduce Store Staffing Costs: With customers handling their own parcel pickups and returns, Morrisons can potentially reduce store staffing costs.

This partnership with Quadient aligns with Morrisons' strategic goals in several ways:

1. Expanding its convenience store network: Morrisons has set a goal to reach 2,000 convenience stores by 2025. This partnership with Quadient will contribute to this expansion, with parcel lockers being installed at 230 Morrisons Daily stores by spring 2025.
2. Enhancing its omnichannel offerings: The partnership with Quadient allows Morrisons to offer a broader range of services to its customers, including secure parcel pick-up and return services. This aligns with Morrisons' goal to enhance its omnichannel offerings, providing customers with more convenient and flexible options for shopping and managing their deliveries.
3. Driving footfall and boosting in-store sales: Quadient's research shows that when visiting lockers hosted at stores, more than half of consumers make additional purchases. This partnership, therefore, aligns with Morrisons' goal to drive footfall to its stores and boost in-store sales.
4. Aligning with Morrisons' commitment to customer experience: Morrisons has been focusing on improving its customer experience, as highlighted by its new CEO, Rami Baitiéh. This partnership with Quadient aligns with this commitment, as it offers customers a more convenient and efficient way to manage their deliveries, enhancing their overall shopping experience.

In conclusion, Morrisons' partnership with Quadient for installing Parcel Pending by Quadient parcel lockers at 230 Morrisons Daily stores by spring 2025 is a strategic move that aligns with the company's goals of expanding its convenience store network, enhancing its omnichannel offerings, driving footfall, boosting in-store sales, and improving customer experience. This partnership offers Morrisons potential revenue streams and cost savings, contributing to the company's overall financial performance. As an investor, keeping an eye on Morrisons' progress in this partnership and its impact on the company's financials could be an interesting opportunity.