Overcast

Overcast

max temp: 11°C

min temp: 10°C

Search

Amazon launches online partnership with supermarket group Morrisons

10:09 29 February 2016

A worker tapes shut a parcel in the Amazon fulfilment centre in Peterborough.
Photo: Chris Radburn/PA Wire

A worker tapes shut a parcel in the Amazon fulfilment centre in Peterborough. Photo: Chris Radburn/PA Wire

Online retail giant Amazon has pushed further into the British grocery market by joining forces with supermarket Morrisons.

The company has secured a supply contract with the Big Four grocer, which will see it offering “hundreds” of Morrisons products through its food delivery service Amazon Pantry and its subscriber service Amazon Prime Now.

The deal will give Amazon customers access to Morrisons “fresh and frozen” products, the supermarket said.

Morrisons chief executive David Potts said the combination of the supermarket’s “fresh food expertise and Amazon’s online and logistics capabilities is compelling”.

He added: “This is a low-risk and capital-light wholesale supply arrangement that demonstrates the opportunity we have to become a broader business.”

The announcement comes after supermarket Sainsbury’s upped the ante in the highly-competitive grocery sector last month when it tabled a £1.3billion bid for Argos-owner Home Retail Group in an attempt to become a “world-leading” retailer bigger than John Lewis and Amazon UK.

Howeer, the proposed deal faces competition, with South African-based furniture retailer Steinhoff making a rival offer for Home Retail Group at £1.4bn.

Amazon heaped more pressure on the British grocery market in November last year when it launched a grocery service for Amazon Prime members with thousands of products.

Amazon Pantry delivers groceries and household products to subscribers for a fee of £2.99 per box.

It comes as the British grocery sector continues to be locked in a supermarket price war, which has seen the Big Four supermarkets slash their prices to protect market share from the rise of German discounters Aldi and Lidl.

Meanwhile, Morrisons also said it was pressing ahead with plans to bolster its website after agreeing a deal in principle with online grocery retailer Ocado.

The supermarket said it would take up space at Ocado’s new customer fulfilment centre in Erith, south east London, in a move to “sell to customers all over Great Britain”.

It comes after the grocer signed a £170million contract with Ocado in 2013, providing the Bradford-based supermarket with its first online delivery service.

Morrisons, which runs just under 500 stores, last month reported a 0.2% rise in sales at established stores, excluding fuel, in the nine weeks to January 3 in a marked turnaround after recent hefty sales declines.

It was followed by a fresh drive by the supermarket at the beginning of February to snap up more customers by cutting the prices of more than 1,000 products.

Shore Capital analyst Clive Black said the tie-up with Amazon was “potentially quite inspired by David Potts”.

He added: “It is highly complementary to the business in its current form. We have heard it said by some that Mr Potts may be more of a retailer than a strategist; such folk may need to think again.”

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Ipswich Star visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Ipswich Star staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Ipswich Star account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

A silhouette shot of 'Sarah', who has spoken about her experience with domestic abuse. Picture: Sarah Lucy Brown

A domestic violence survivor from Suffolk has told how family and friends intervened to help her flee a 13-year abusive relationship that left her “completely beaten”.

Jeremy Head, who took his own life at mental health unit Wedgwood House, in Bury St Edmunds, in 2014. Picture: Ashtons Legal

The sister of a 49-year-old man who was found hanged at a mental health unit in Suffolk has said she begged for help in the weeks leading up to his death.

Lauren Sherwood and Jaimin Patel (centre, arms linked) at Glemhall Hall where they met with suppliers of the St Elizabeth Hospice win a wedding competition. Picture: Echo Alfa

A Colchester couple who won St Elizabeth Hospice’s wedding giveaway last year have pledged their commitment to raising thousands of pounds for the cause in return for their special day at Glemham Hall.

President Vladimir Putin Dmitry Astakhov/ Sputnik, Government Press Service Pool photo via AP

Russian president Vladamir Putin should be offered a state visit, a Suffolk MP has said.

Glasses of fizz

Is a new style of bubbly about to take the supermarket aisles by storm with its mix of two favourite tipples?

Chaos on the trains at London Liverpool Street. Picture: Jon Carney

Two points failures at London Liverpool Street which saw thousands of rail passengers heading towards Ipswich delayed this evening have been fixed.

Broke Hall Community Primary School, Ipswich, had a Tractors in School visit - farmer John Taylor with Kara Bassil. Picture: NIGEL BROWN

Hundreds of youngsters will get close-up to one of the most impressive and hi-tech working vehicles this week – as they take part in a growing education programme.

Silhouette of a domestic abuse victim. Picture: Andy Abbott

A project pledging to give extra support to domestic abuse victims in Suffolk has been awarded hundreds of thousands of pounds in government funding.

Suffolk Constabulary's headquarters in Martlesham Heath, where the 999 control room is based.   Picture: SU ANDERSON

Police in Suffolk have vowed to investigate why the force has the worst rate of abandoned 999 calls in the country.

Traffic on the Orwell Bridge. Picture: Lucy Taylor

A car has broken down in the outside lane which is causing problems for drivers heading towards Ipswich and Bury St Edmunds.

Most read

HOT JOBS

Show Job Lists

Topic pages

Newsletter Sign Up

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24