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Amazon in food delivery deal with supermarket Morrisons

PUBLISHED: 09:34 29 February 2016 | UPDATED: 15:39 29 February 2016

A worker tapes shut a parcel in the Amazon fulfilment centre in Peterborough Cambridgeshire. Picture: Chris Radburn

A worker tapes shut a parcel in the Amazon fulfilment centre in Peterborough Cambridgeshire. Picture: Chris Radburn

Online retail giant Amazon has pushed further into the British grocery market by joining forces with supermarket Morrisons.

The company has secured a supply contract with the Big Four grocer, which will see it offering “hundreds” of Morrisons products through its food delivery service Amazon Pantry and its subscriber service Amazon Prime Now.

The deal will give Amazon customers access to Morrisons “fresh and frozen” products, the supermarket said.

Morrisons chief executive David Potts said the combination of the supermarket’s “fresh food expertise and Amazon’s online and logistics capabilities is compelling”.

He added: “This is a low-risk and capital-light wholesale supply arrangement that demonstrates the opportunity we have to become a broader business.”

The announcement comes after supermarket Sainsbury’s upped the ante in the highly-competitive grocery sector last month when it tabled a £1.3bn bid for Argos-owner Home Retail Group in an attempt to become a “world-leading” retailer bigger than John Lewis and Amazon UK.

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