Morrisons and Amazon announce deal
Supermarket to sell food on Amazon site
Morrisons recently announced a deal to start selling its groceries on Amazon.
The supermarket, which recently shut a number of stores, will begin to offer products for delivery via the e-commerce giant in the coming months.
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It has been described as a standard wholesale deal between the retailer, Amazon, and the supplier, Morrisons.
This means that Amazon will choose which goods to stock from Morrisons range.
However the deal seems far from standard as Morrisons become the exclusive supplier of fresh food for Amazon.
Simon Jack business editor of the BBC says:
"Morrisons will gain an important new channel for its food manufacturing business and will at a stroke essentially become a food wholesaler to Amazon."
David Potts, chief executive of Morrisons, said:
"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 now loses a mark on our rankings tables for being in a "strategic relationship with a company under a boycott call". This reduces its score from 2.5 to 2.
See our comparative rating of Supermarkets.
Further Reading: Boycott Against Amazon
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