Morrisons invests in US online grocer

Morrisons has announced a £32 million investment in US internet grocer FreshDirect.

Morrisons has announced a £32 million investment in US internet grocer FreshDirect, which will see it take a 10% stake in the firm.

The move marks its second e-commerce investment in as many months, after the acquisition of baby goods website Kiddicare for £70 million.

The news comes after the food retailer announced a pre-tax profit of £874 million for the 12 months to the end of January, up from the £858 million it made in the same period a year ago.

However, it has warned that it expects the economic backdrop to remain challenging in 2011. In a statement it said, "... With higher taxes, government spending cuts, inflation and rising unemployment all continuing to weigh on consumer confidence and disposable incomes."