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Morrisons teams up with Amazon in food supply deal

Morrisons has teamed up with online retail giant Amazon in a new supply agreement which will see hundreds of Morrisons grocery products available to Amazon Prime Now and Amazon Pantry customers.

GENERAL MERCHANDISE

Morrisons teams up with Amazon in food supply deal

The supermarket will provide a wholesale supply service to Amazon to allow Amazon customers access to a wide range of Morrisons ambient, fresh and frozen products.

In a statement, Morrisons said it was focusing on its six priorities to make its supermarkets "strong again" and that the partnership with Amazon would give it an opportunity to build a broader business.

David Potts, Morrisons chief executive, said: "Today's agreement is built on Morrisons unique strengths as a food maker. The combination of our fresh food expertise with Amazon's online and logistics capabilities is compelling.

"This is a low risk and capital light wholesale supply arrangement that demonstrates the opportunity we have to become a broader business. We look forward to working with Amazon to develop and grow this partnership over the coming months."

In addition, Morrisons has been in discussions with Ocado to grow its online retail offer and has agreed in principle to take space in Ocado's new customer fulfilment centre in Erith.

Ocado will also deliver a store pick solution for Morrisons. When implemented, this will enable Morrisons.com, working with Ocado, to sell to customers all over the UK.

Morrisons added: “The amended agreement is subject to detailed terms being agreed and will only proceed if it enables Morrisons to achieve profitable growth online.”

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