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Morrisons unveils Amazon supply tie-up to bolster online presence

Morrisons has unveiled a tie-up with Amazon that will see hundreds of its products become available to the etailer’s customers.

According to Retail Week, the supermarket giant revealed it will provide “a wholesale supply service” to Amazon, allowing a “wide range” of its fresh, frozen and ambient products to be sold through the US titan’s Prime Now and Pantry services.

Morrisons chief executive David Potts, who took the reins last March, is focused on rejuvenating the grocer’s performance in its core supermarket business and has already sold off its convenience business in order to concentrate on its larger stores.

The first green shoots of recovery in his turnaround plan came over Christmas when Morrisons turned in an unexpected 0.2% increase in like-for-like sales.

It said the wholesale supply deal would enable this as it takes advantage of its vertically integrated business model by “growing volumes and leveraging our manufacturing, distribution and wholesale capabilities”.

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.”

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