Morrisons and Amazon have today announced a further extension of their partnership which will see one-hour grocery deliveries available “in even more cities across the UK over the coming years”.
Amid the grocer’s full year results released today, in which it posted its first drop in sales since 2016, Morrisons announced an extension in “both time and scope” with the ecommerce giant.
Amazon will now work with Morrisons as part of a permanent multi-year partnership, rather than on a rolling basis, and is set to see one-hour delivery of Morrison’s entire product range expanded to more of the UK.
“We greatly value our partnership with Morrisons and are pleased to announce an extension of our wholesale relationship,” Amazon’s UK country manager Doug Gurr said.
“This builds on our recent expansion of the Morrisons store on Prime Now, enabling us to offer Morrisons products to more Prime members in even more cities across the UK over the coming years.
“We are committed to growing our grocery business and continuing to innovate and deliver the things our customers will always care about including low prices, vast selection, and fast delivery. Our relationship with Morrisons is an important part of this growth.”
Prime Now customers in Leeds, Manchester, Birmingham and parts of London can currently order a full Morrisons shop online, which will then be picked at a local supermarket and delivered by Amazon.
Morrisons says this new partnership will see ultra-fast same day delivery rolled out to other cities including Glasgow, Newcastle, Liverpool, Sheffield and Portsmouth during 2019, and more cities in “future years”.
Hargreaves Lansdown’s equity analyst Sophie Lund-Yates says this new partnership will be good news for the supermarket’s investors.
“News the group has tightened its relationship with Amazon will be welcome – there are few partners that carry as much weight and potential as the online giant.
“It’s flattering, and potentially lucrative to be shoulder-to-shoulder with Amazon as it seeks to expand its online grocery delivery service…That doesn’t mean all attention should be diverted away from the core retail business though.”