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.
Morrisons said it is focussed on its six priorities to make the supermarkets strong again. In addition, it sees 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 manufacturing, distribution and wholesale capabilities.
“Today’s agreement is built on Morrisons unique strengths as a food maker,” said Morrisons Chief Exec David Potts. “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 Morrisons.com 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 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 Great 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.