In a move expected to impact the British supermarket sector , Amazon announced that it has signed a supply agreement with Morrisons supermarket to offer its Amazon grocery Now and Amazon Pantry customers fresh and frozen food products . However , two years ago , Morrisons signed a 25-year deal with Amazon , to become the " exclusive provider of online grocery services for Morrisons , " according to Ocado 's finance director . Ocado , who also signed a supply deal earlier this year with Amazon , is also reported to be in negotiations with Morrisons to share some of the capacity of its customer fulfilment centre currently being located in north east London and its advanced produce - picking technology . Analysts at Credit Suisse viewed the deal as a threat to Ocado stating it should sell to Amazon . Morrisons ' share price rose 5 % while Ocado dropped 6.5 % at market open .
In a move expected to impact the British supermarket sector, Amazon announced that it has signed a supply agreement with Morrisons supermarket to offer its Amazon Prime Now and Amazon Pantry customers fresh and frozen food products. However, two years ago, Morrisons signed a 25-year deal with Ocado, to become the "exclusive provider of online grocery services for Morrisons," according to Ocado's finance director. Ocado, who also signed a supply deal earlier this year with Amazon, is also said to be in negotiations with Morrisons to share some of the capacity of its customer fulfilment centre currently being built in south east London and its advanced produce-picking technology. Analysts at Credit Suisse see the deal as a threat to Ocado stating it should sell to Amazon. Morrisons' share price rose 5% while Ocado dropped 6.5% at market open.