Morrisons Wins Retail Lottery With Amazon Grocery Supply Deal

By Gary Cutlack on at

Shares in UK supermarket Morrisons have gone through the roof today, thanks to news that it's set to supply the goods to Amazon for the latter's Pantry and Prime Now food deliveries.

The deal will see Morrisons source and supply the fresh, frozen and various other non-perishable goods that are sold in some parts of the UK, with those who are geographically able to fill up their cupboards via Amazon's Prime Now and Pantry options soon able to stock up with a wider range of veg and other foods.

It's unlikely shoppers will know what's going on behind the scenes, though, as Morrisons describes the deal as being for a "wholesale supply service" -- so it'll all likely still be branded as generic Amazon produce. The key loser in the deal would appear to be Ocado, the grocery delivery service that also uses Morrisons and handles the supermarket's current deliveries, as who'd carry on buying through Ocado should Amazon carry all the same stuff?

Morrisons boss David Potts said of the deal: "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." [BBC]

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