Amazon has partnered with UK-based supermarket chain Morrisons to deliver fresh and frozen groceries to consumers via its Amazon Prime Now and Amazon Prime Pantry services.
The online retail giant first made Amazon Prime Now available in London in June 2015, and then launched Amazon Pantry in the UK in November 2015 as a way to expand its online grocery business through the country.
“The combination of our fresh food expertise with Amazon’s online and logistics capabilities is compelling,” said David Potts, CEO of Morrisons in a statement. “This is a low risk and capital light wholesale supply arrangement that demonstrates the opportunity we have to become a broader business.”
With consumers more often demanding that retailers provide convenience as a major part of their offerings, Morrisons appears to understand that while they might not be able to cater to these demands on their own, outsourcing to a third party is a viable option.
While all retailers strive for convenience on some level, they must be aware of how much they can handle before making promises to the consumer. Morrisons’ decision to partner with Amazon shows that even well-established national retailers can use outside help when it comes to bolstering their logistics capabilities.
From Amazon’s perspective, the partnership is another indicator that its Prime services still have room to reach a largely untapped consumer base. If more global retailers operating in markets that offer Prime choose to partner with Amazon in the future, the e-Commerce behemoth could potentially establish itself as a global logistics powerhouse.