Monday, 29 February 2016

Morrisons-Amazon Supply Arrangement implications

News that Morrisons aim to supply Amazon Prime Now and Amazon Pantry customers with a wide range of Morrisons ambient, fresh and frozen products will obviously impact UK multiples' business.

NAM Implications:
  • Prime Pantry Partnership is a leap forward for Morrisons, besides optimising spare capacity in their factories...
  • Morrisons, by continuing to work with Ocado, can have little objection to Ocado offering their fulfilment services to other mults...
  • By which time, as Amazon-Morrisons coverage increases, so will Morrisons begin to compete with itself via Ocado-Morrisons
  • Meanwhile, although charging £2.99 for Prime Pantry delivery, if Prime customers ‘forget’ the annual fee, Amazon will have set a new low in delivery charges, increasing pressure on other multiples
  • …While Amazon then tightens the delivery-speed option…
  • Finally, Argos fulfilment had better be as good as is hoped…

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