Online retailer Amazon is poised to enter the British fresh food market after agreeing a supply deal with supermarket Morrisons.
Morrisons said that the deal would allow Amazon Prime Now and Amazon Pantry customers access to Morrisons ambient, fresh and frozen products in the “coming months”.
Amazon Pantry was launched in the UK last year but did not offer fresh food.
“The combination of our fresh food expertise with Amazon’s online and logistics capabilities is compelling,” said Morrisons chief executive David Potts.
“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 also said it will expand the geographical coverage of Morrisons.com by taking space in Ocado’s distribution centre in Erith, southeast London.
The agreement is subject to detailed terms being agreed and will only proceed if it enables Morrisons to achieve profitable growth online.
Posted on March 2, 2016
by Edwin Kalischnig filed under