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* Firm will make first online grocery delivery Jan. 10
* Says switching favourites lists from rivals will be easy
* Delivery charges will be one, three and five pounds
* Will cover 50 pct of UK homes by end of 2014
By James Davey
LONDON, Nov 21 (Reuters) - Britain's No. 4 supermarket WmMorrison will attempt to win customers from rival's longestablished online grocery businesses by making it easy for themto switch, Chief Executive Dalton Philips told reporters onThursday.
"By enabling customers with one click to import theirfavourites we'll be bringing switching to the online foodmarket," Philips said as he detailed the firm's online groceryplans at a salmon-packing factory in Stratford, east London.
UK online grocery sales are forecast to grow 16.9 percent to6.9 billion pounds ($11.2 billion) in 2013, according to marketresearch group Mintel.
Bradford, northern England-based Morrisons is the last ofBritain's "big four" supermarkets to sell groceries over theinternet, playing catch-up with market leader Tesco,Sainsbury's and Wal-Mart's Asda who have beenexpanding their online businesses since the late 1990s.
Morrison's plan to differentiate itself is to focus more onfresh food and what it hopes will be superior customer service.
It says the switching software will be a unique feature onits website that will enable shoppers to easily import theirlist of favourite grocery items from the sites of Tesco, Asda, JSainsbury, Waitrose and even Morrisons' online grocerypartner Ocado.
Morrisons' late entry into both online grocery and localconvenience stores, the sector's two fastest growing channels,has dented its profit and market share. Earlier this month itposted a seventh straight fall in quarterly underlying sales.
To address this the firm agreed in May to invest 216 millionpounds in a 25-year deal with online grocer Ocado that will giveit an online grocery capacity of 500 million pounds of sales andsee it start home deliveries by January 2014.
It is also aggressively opening "M local" conveniencestores, with a target of 100 by the end of the year and 200 bythe end of 2014.
"There's a huge difference between late and too late. Yes,we are late but we are not too late," said Philips. "We haveused that time wisely to learn from others."
Features will include being able to order meat cut to aspecific size from a virtual butcher, product ratings fromexperts and a "doorstep check" with customers that they aresatisfied with all fresh produce on delivery. If they are not,refunds and vouchers will be issued.
A minimum spend of 40 pounds will also apply and charges forone hour delivery slots will be one pound for off-peakdeliveries, three pounds for standard and five pounds for peakevening slots. The industry average delivery charge is about3.50 pounds according to Philips.
Morrisons, which already sells non-food items online, hadheld back from selling food because it had doubts over theprofitability of delivering groceries to customers' homes.
Ocado has yet to make a pretax profit in a decade ofbusiness. Morrisons expects to make a profit from online groceryfrom the 2016-17 year.
Morrisons will start online food deliveries in Warwickshire,central England, on Jan. 10 direct from a distribution centre inDordon. An extension to Yorkshire in northern England willfollow shortly afterwards. By the end of 2014 it expects toserve more than 50 percent of British homes, including London,with an online offering.
Shares in Morrisons closed Thursday at 266.5 pence, valuingthe business at 6.22 billion pounds.
