Morrisons is to work with both Amazon and Ocado as it looks to grow its online sales.Hundreds of Morrisons’ products are to be sold through Amazon’s Prime and Pantry services in coming months. The supermarket will supply fresh, frozen and ambient food products to Amazon on a wholesale supply basis as it looks to build a “broader business that complements our supermarkets and is consistent with our commitment to pursue capital light growth.”
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.”
He said the supermarket looked forward to developing and growing the Amazon partnership in coming months.
Meanwhile, it is renegotiating its agreement with Ocado, which supplies the technology and fulfilment services behind Morrisons.com, to enable pick from store – enabling Morrisons.com to sell to customers all over Great Britain. Morrisons will take space in Ocado’s new Erith, south east London, customer fulfilment centre which is due to go live at the end of 2017. Ocado will provide Morrisons with the software it needs to fulfil orders from stores – enabling Morrisons to serve online customers in areas that are not served by Ocado’s network of fulfilment centres.
However, said Morrisons, the agreement would only go ahead if it enabled it “to achieve profitable growth online”.