Farming News - Morrisons and Amazon strike online sales deal
News
Morrisons and Amazon strike online sales deal
Morrisons has made an agreement with Amazon to sell the supermarket’s products online.
Under a new supply agreement brokered between the two companies, hundreds of fresh and frozen Morrisons products will be available to Amazon Prime Now and Amazon Pantry customers. Morrisons is expected to begin selling its products via the online retail giant in the coming months, according to a statement from Morrisons, released on Monday.
Launched last year, Amazon Pantry allows Prime customers to buy dry goods through its online store, but unlike the UK’s major supermarkets who have made the move to online sales, does not currently offer fresh produce. In the US, where Amazon first set up shop, customers in major cities are already able to purchase groceries through the site.
In the UK, Morrisons already has an agreement with online supermarket Ocado to deliver good sold online, though company bosses are reportedly not content with the delivery network of Hertfordshire-based Ocado. On Monday, the company said it had reached an agreement with Ocado, which will involve Morrisons taking space in Ocado’s new distribution centre in Erith, East London.
In its statement on the Amazon agreement, Morrisons qualified that, “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.”
Even so, Morrisons Chief Executive David Potts 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.”
Amazon has announced a range of ideas for expansion in recent weeks, including launching own-brand fashion labels and exploring the possibility of a restaurant delivery service. The online retailer has come under fire from labour and tax campaigners over treatment of staff in its distribution centres and its tax arrangements in the UK.