Breakfast briefing: Retail news on Morrisons and clothing sales in Ireland

Morrisons partnership with Amazon affects Ocado

Ocado’s shares decreased 8.5% at 258¼p a share following Amazon’s new partnership with Morrisons for one-hour delivery to customers in some postcodes in London and Hertfordshire, The Times reported.

Ocado changed the terms of its original contract with Morrisons following the deal with Amazon. The new deal will allow Morrisons to fulfil online orders in parts of the country by using store-picking software, provided by Ocado, in its shops.

Once it is established, the agreement, which saw Ocado take a slice of Morrisons’ online income, will end. The fee Morrisons provides Ocado for research and development will also be reduced.

Morrisons has agreed to contribute in building Ocado’s new distribution centre in Erith, south-east London.

An Ocado spokesperson said: “We have been assured by Morrisons that they acknowledge and respect the exclusivity provisions in our agreement, which oblige Morrisons to operate their online grocery business only through the Ocado arrangements.”

Clothing sales increase in Ireland

Tommy Hilfiger, Hugo Boss and Calvin Klein have reported increased sales in Ireland owing to a recovering clothing retail sector, the Irish Independent reported.

The revenues at Hilfiger Stores Ireland Ltd increased 19% to €21.9m (£18.86m) last year. However, the pre-tax profits declined 33% to €449,000 (£386,000).

Hugo Boss Ireland Ltd posted a 15% increase to €10.8m, while pre-tax profits fell 38% from €578,507 to €357,849.

The drop in pre-tax profits was a result of expansion costs.

Calvin Klein Stores Ireland Ltd recorded a 41% increase in pre-tax profits to €78,403.

Hilfiger Stores directors said: "There will be a focus on realising sales growth through existing stores with a steady or reduced cost."