Morrisons to supply food to Amazon Pantry and Prime customers in online deal

Morrisons said hundreds of products will be available on Amazon Pantry, a grocery service

Amazon, the giant of online retail, has been coy about its grocery ambitions in the UK (PA)

Morrisons groceries, including fresh food, will be sold on Amazon through a supply agreement announced on Monday.

Morrisons said hundreds of products will be available on Amazon Pantry, a grocery service launched in the UK last year, and to Amazon Prime subscribers.

David Potts, Morrisons chief executive, said the deal was a low risk way to improve its service to customers as it tries to "make the supermarket strong again". Morrisons announced the closure of seven stores in January, adding to 20 closed last year at the expense of hundreds of jobs.

“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," Potts said.

The deal comes as Morrisons increases its online delivery service in partnership with Ocado. This includes Morrisons taking space in an Ocado distribution centre in Erith, in Southeast London that will enable it to deliver groceries around the country.

Morrisons said it would not enter the deal unless it could be assured of profitability.

"This amended agreement... will only proceed if it enables Morrisons to achieve profitable growth online," the grocer said in a statement.

The deal signals to the embattled supermarket sector that Amazon is making inroads with Amazon Pantry, their fresh food delivery service, to take on established grocers in the online food market.