One of the top UK supermarket Wm Morrison signed a deal with Amazon which will help the company to sell groceries including fresh food to Amazon customers crosswise the country. Amazon launched an online grocery service called Pantry last year which was expected to posse a threat for the traditional supermarkets. But with the new development, it appears that the Amazon’s plot is helping one of the traditional supermarkets which is fighting hard to stay alive in the fierce price war against the German discounters Aldi and Lidl.
Under the wholesale supply agreement unveiled on Monday, Morrisons said “hundreds” of its products will be available to Amazon Pantry and Amazon Prime customers, who pay an annual subscription fee. The new deal would allow Amazon to sell non-perishable item, which the company until now have not endeavored.
Morrisons’ chief executive, David Potts said that the agreement asserts the supermarkets strength as a food maker. He added that the combination of their fresh food expertise with Amazon’s online and logistics capabilities will be compelling. Despite the current deal, Morrisons, the fourth biggest supermarket in UK will continue to develop its own online platform which is operated in assistance with Ocado. The company said that the amended agreement [with Ocado] is subject to detailed terms being agreed and will only proceed if it enables Morrisons to achieve profitable growth online.