Amazon to Provide Grocery Services in UK with Morrison Agreement

By March 1, 2016 Amazon

Amazon has recently signed a deal with Morrison Supermarkets and is now all set to sell their grocery products to the Amazon members.

Grocery industry in UK is already saturated; and this deal is now expected to hit this industry as Amazon possesses biggest fame in e-commerce. This deal is surely going to benefit Morrison Supermarkets by helping it beating the competition in the bigger domain. According to Morrison, their partnership deal with Ocado Group is also going to be renewed. Ocado Group had its shares fallen down due to entry of American online retailer in the industry.

Amazon, with the help of this deal, is expected to dominate this market which already seems to be in tightly reined due to lower wages and increased discounts on most of the products. It is speculated that this deal would force retailers to terminate more than 900,000 jobs in the next decade. Shore Capital’s analyst, Clive Black, says that entire trade in London is going to face a big challenge due to Amazon’s deal with Morrison. Ocado would also have a fair share in putting up this challenge.

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Through Prime Now and Pantry services, there would be a selection of grocery items that Amazon will offer under the recent agreement. It is to ensure that Amazon Members could get fresh, ambient and frozen grocery products.

With the fact that Amazon UK has maintained its popularity by selling 150 million products, its deal with Morrison is going to enhance production work of Morrison many times. Production capability of Morrison and popularity of Amazon are expected to make the competition impossible to beat for other retailers in the market.

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Tristan Chapple, who is the head of Phoenix Asset Management research, says that later investments at Morrison are definitely going to pay off in a great way because Amazon’s deal would require Morrison to speed up the production by hiring new resources and manpower to catch up with the demands of Amazon.

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