Morrisons will be supplying food to Amazon customers in the UK following a new deal with the US Company.
The supermarket said that under the new deal it will be supplying products to customers with Amazon Prime Now and Amazon Pantry package.
Under the agreement Morrisons will be supplying fresh, frozen and non-perishable goods, this will become available to customers later this year.
The supermarket sector is one of the most competitive in recent years, analysts have warned that Morrisons’ agreement with Amazon could further hurt traditional players.
Morrisons chief executive David Potts said: “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.”
Morrisons have already secured a deal with Oxado, to help expand the supermarket’s website Morrisons.com, which is expected to take place in Ocado’s new distribution centre in south east London.
When implemented the deal is expected to expand Morrisons’ online presence across the UK. Morrison’s share price rose by 5% making it the biggest riser on stock market following the announcement of the two new online deals.