The UK retailer will provide a wholesale supply service to Amazon, allowing the online retailer’s customers access to a wide range of Morrisons’ ambient, fresh and frozen products.
In the coming months, hundreds of Morrisons products will be available to Amazon Prime Now and Amazon Pantry customers.
Morrisons Chief Executive David Potts says the retailer has an opportunity to build a broader business that complements its supermarkets and is consistent with its commitment to pursue capital light growth. Wholesale supply enables this by growing volumes and leveraging Morrisons’ manufacturing, distribution and wholesale capabilities.
“Today’s agreement is built on Morrisons’ unique strengths as a food maker,” he 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. 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 online grocery retailer Ocado to grow Morrisons.com and an agreement in principle has been reached. This involves Morrisons taking space in Ocado’s new customer fulfilment centre in Erith (greater London area), and Ocado delivering a store-pick solution for Morrisons that leverages Ocado’s technology and Morrisons’ store assets. When implemented, this would enable Morrisons.com, working with Ocado, to sell to customers all over Britain.
This amended agreement is subject to detailed terms being agreed and will only proceed if it enables Morrisons to achieve growth online. There can be no certainty that an agreement will be concluded.