Morrisons has this morning announced a new supply deal with Amazon.

The supermarket said that shortly hundreds of its products will be available to Amazon Prime Now and Amazon Pantry customers.

Morrisons will provide a wholesale supply service to Amazon, allowing Amazon’s customers access to a wide range of ambient, fresh and frozen products.

And it added that new terms in principle had been agreed with Ocado to grow

 David Potts, Morrisons’ chief executive, said: “Today’s agreement is built on Morrisons unique strengths as a food maker. The combination of our fresh food expertise with Amazon’s online and logistics capabilities is compelling.  

"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."

Morrisons will now also take space in Ocado’s new customer fulfilment centre in Erith and it will deliver a store pick solution for Morrisons that ‘leverages Ocado’s technology and Morrisons store assets’.