Morrisons and Amazon are today announcing a new supply agreement. In the coming months, hundreds of Morrisons products will be available to Amazon Prime Now and Amazon Pantry customers.
Morrisons will provide a wholesale supply service to Amazon, allowing Amazon’s customers access to a wide range of Morrisons ambient, fresh and frozen products.
Launched last year, Amazon Pantry allows Prime customers to buy dry goods through its online store, but unlike the UK’s major supermarkets who have made the move to online sales, does not currently offer fresh produce. In the US, where Amazon first set up shop, customers in major cities are already able to purchase groceries through the site.
Morrisons are focused on six priorities to make the supermarkets strong again. "In addition, we have an opportunity to build a broader business that complements our supermarkets and is consistent with our commitment to pursue capital light growth. Wholesale supply enables this by growing volumes and leveraging our manufacturing, distribution and wholesale capabilities", Morrisons said in a statement.
David Potts, Chief Executive, said of the Amazon agreement: “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.”
