Morrisons is to partner with Amazon in a new supply agreement to sell food in the UK.
The supermarket will supply the online retail business with hundreds of its products that will be available via Amazon Prime Now and Amazon Pantry services in the coming months.
Amazon launched its Pantry service in the UK last November. It offers around 4,000 food and household products to customers of Amazon Prime. The deal with Morrisons means that it will now sell a wider range of fresh and frozen food also.
Morrisons said the partnership with Amazon was part of its focus on six priorities to strengthen the business and broaden its operations in a way that is consistent with its commitment to “pursue capital light growth”.
David Potts, CEO at Morrisons, said: “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,” he said. “We look forward to working with Amazon to develop and grow this partnership over the coming months.”
Amazon has sold a wide range of food and drink in the US for several years and the supermarket industry has been speculating about whether the online giant may try to expand its food operation in the UK. Amazon also offers a small range of chilled and frozen items for one-hour delivery as part of its Prime Now service to parts of London and Birmingham.
Also, Morrisons said it has also reached an agreement in principle with Ocado to take space in its new customer fulfilment centre in Erith in south east London, which would allow it to expand the coverage of morrisons.com nationwide.
But the supermarket said the agreement was subject to detailed terms being agreed and would only proceed if it enabled Morrisons to achieve profitable growth online. The company stressed: “There can be no certainty that an agreement will be concluded.”