Amazon has struck a deal with supermarket chain Morrisons to supply fresh and frozen food to its online customers.
Morrisons will provide a wholesale supply service to Amazon Pantry customers. Amazon’s Pantry service was launched last year, in what was seen as a threat to established UK supermarket chains.
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.”
An agreement in principle has also been reached between Morrisons and Ocado to grow Morissons.com.
The deal would involve Morrisons taking space at Ocado’s new customer centre in Erith, and Ocado delivering a store pick solution for Morrisons that leverages Ocado’s technology and Morrisons’ store assets.
In a statement, Morrisons said the deal would enable Morrisons.com, working with Ocado, to sell to customers all over the UK.
However, it said that the agreement was subject to detailed terms being agreed and will only proceed if it enables Morrisons to achieve profitable growth online.
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