UK-based supermarket chain Morrisons and US-based online retailer Amazon have entered into a supply agreement, through which the supermarket will make several of its products available on the ecommerce platform.
The companies have a struck a deal through which Morrisons' array of ambient, fresh and frozen products would be available through Amazon Prime Now and Amazon Pantry.
Morrisons CEO 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."
The company's release states that it is focused on reviving the supermarket's growth and it is leveraging opportunities to build its business through steps that complement the commitment.
According to Morrisons, wholesale supply helps the company's growth in volumes and helps leverage its manufacturing, distribution and wholesales capacities.
Separately, Morrisons has also been in negotiations with Ocado to expand its ecommerce business. The agreement involves Morrisons acquiring Ocado's new Customer Fulfilment Centre (CFC) and Ocado delivering a store pick solution for Morrisons. This move would leverage Ocado's technology and Morrisons store assets.
On implementation, Morrisons.com would be able to sell its merchandise across the UK in partnership with Ocado.
The transaction details are yet to be agreed upon and will only advance if the deal helps Morrisons achieve profitable online growth. The company does not guarantee that a deal could be struck.
