Morrisons and Amazon have announced a groundbreaking new partnership that will see hundreds of fresh and frozen products available to Amazon Prime and Amazon Pantry shoppers.
Morrisons will provide a wholesale supply service to Amazon under the new agreement, which the retailer said is part of its strategy to make its business stronger.
“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,” a statement from Morrisons said.
Chief executive David Potts said the combination of its 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,' he added.
In addition, Morrisons said it confirmed plans with Ocado to grow Morrisons.com and expand distribution to the rest of the UK.
This involves Morrisons taking space in Ocado’s new Customer Fulfilment Centre (“CFC”) in Erith, and Ocado delivering a “store pick solution” for Morrisons.
The amended agreement will only go ahead if it enables Morrisons to achieve profitable growth online, the company said, stressing that there can be “no certainty” that it will go ahead.
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