You are viewing 1 of your 2 free articles

You’ll need to join us by becoming a member to gain more access.
Already a Member?

Login Join us now

Morrisons announces online supply agreement with Amazon

The supermarket also intends to expand its online reach through an agreeement with online retailer Ocado
Twitter Facebook

Morrisons and Amazon have announced a new supply agreement which will see hundreds of Morrisons goods sold through the online retailer.


The deal means Morrisons will provide a wholesale supply service to Amazon, allowing customers to purchase Morrisons ambient, fresh and frozen products through Amazon Prime Now and Amazon Pantry. The service will reportedly be available from later this year.


Investment group Shore Capital said the entrance of Amazon into the UK grocery sector presented challenges to the trade.


The firm’s Darren Shirley said: "Clearly, the advance of Amazon as a participant in UK grocery is a potential challenge to the whole trade in time. Any new entrant is, but particularly the American behemoth.


"For Morrisons, with low exposure to London and the South-East, and the eCommerce channel in particular, there is strategic merit in exploring a commercial tie-up with Amazon in our view."



The agreement comes at a difficult time for the UK grocery sector, with the traditional big four supermarkets fighting for market share amid the continued rise of discount retailers. Morrisons has been one of the retailers particularly badly hit.


Morrisons said the agreement would allow the firm to build a broader business which complimented its supermarkets.


David Potts, chief executive, said: "Today’s 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."


Morrisons has also been in discussions with online retailer Ocada to grow its online offering at Morrisons.com. This involves Morrisons taking space in Ocado’s new Customer Fulfilment Centre and would expand the online reach of Morrisons, working with Ocado, to the whole of Great Britain.

Twitter Facebook
Rating (0 vote/s)
Post a Comment
To see comments and join in the conversation please log in.

More News

EU Referendum, one year on: An in-depth look at the sugar sector

Michael Sly, NFU sugar board chairman, continues FG’s week-long mini-series exploring what has changed for farming in the twelve months since the EU referendum.

Great Repeal Bill risks loss of 97 per cent of herbicides used by farmers

Fears are growing that plans to ‘lift and shift’ EU regulations into UK law through the Great Repeal Bill could see farmers lose up to 97 per cent of the herbicides they currently use.

Holsteins lead the Royal Highland dairy rings

Holsteins dominated the dairy inter-breed championships with the supreme title going to Newbirks Jazz, a third calver by Comestar Lauanguard from Robert and Elaine Butterfield, Lancaster.

Drop tariffs on food produced outside the UK for low prices, says Gove

Defra Secretary Michael Gove has hinted the Government could drop tariffs on food which is not produced in the UK to reduce prices for shoppers after Brexit.
FG Insight and FGInsight.com are trademarks of Briefing Media Ltd.
Farmers Guardian and FarmersGuardian.com are trademarks of Farmers Guardian Ltd, a subsidiary of Briefing Media Ltd.
All material published on FGInsight.com and FarmersGuardian.com is copyrighted © 2016 by Briefing Media Limited. All rights reserved.
RSS news feeds