Morrisons to enter supply arrangement with Amazon

In the coming months, hundreds of Morrisons products will be available to Amazon Prime Now and Amazon Pantry customers.

Supermarket chain Morrisons will provide a wholesale supply service to internet giant Amazon, allowing Amazon’s customers access to a wide range of Morrisons ambient, fresh and frozen products.

In a statement, Morrisons said: ‘We are focused on our 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 chief executive David Potts said: “This 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 and an agreement in principle has been reached.

This involves Morrisons taking space in Ocado’s new Customer Fulfilment Centre in Erith, and Ocado delivering a store pick solution for Morrisons.

When implemented, this would enable, working with Ocado, to sell to customers across Britain. This amended agreement is subject to detailed terms being agreed and will only proceed if it enables Morrisons to achieve profitable growth online. There can be no certainty that an agreement will be concluded.

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