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The new cities where Amazon will deliver Morrisons groceries

Oscar Williams-Grut
Senior City Correspondent, Yahoo Finance UK
A Morrisons supermarket. Photo: Peter Nicholls/ Reuters

Amazon (AMZN) and Morrisons (MRW.L) on Thursday announced plans to expand their online grocery partnership to new cities and towns in the UK.

“Morrisons at Amazon” will now cover the following new locations:

  • Glasgow

  • Newcastle

  • Liverpool

  • Sheffield

  • Portsmouth

The new locations come in addition to Leeds, Manchester, Birmingham, London and parts of the home counties, where “Morrisons at Amazon” already operates.

“Morrisons at Amazon” allows Amazon customer to do their grocery shopping at the online retailer. Orders are packed at local Morrisons before being delivered to people’s doors. The partnership is part of Amazon’s Prime Now service, which offers one hour delivery to subscribing customers.

Doug Gurr, Amazon’s UK boss, said: "We have greatly valued our relationship with Morrisons since the launch of the Morrisons store on Prime Now in the UK in 2016 and expanding this relationship enables us to offer Morrisons high quality grocery selection to even more Prime members.

"We are committed to growing our grocery business so that we can continue to deliver what we know our customers will always care about - low prices, vast selection, and fast delivery - and our relationship with Morrisons is an important part of that long-term growth.

“With the Morrisons store on Prime Now, many Prime members can do their full weekly grocery shop online through Prime Now with ultra-fast same day delivery."

Shares in Morrisons rose by 1.1% after the expansion of the tie-up was announced.

Clive Black, a retail analyst at Shore Capital, said: “We see potential significance in Amazon's commitment to grow its grocery business in the UK and the further deepening of its involvement with Morrison's.”

Neil Wilson, senior market analyst at Markets.com, said: “Having trialled out the service in key locations, the nationwide rollout is a major step up for Morrisons and a sign that a) the service is delivering and fundamentally is a success, and b) ties with Amazon remain firm.

“The one-hour delivery option is particularly appealing for consumers who want everything right now.”

David Potts, Morrisons CEO, said: "Morrisons’ conveniently located local supermarkets and Amazon's very popular website and customer offer are an ideal combination, offering ultra-fast same day grocery home delivery for customers in and around cities across Britain.

"Amazon has been a valued partner of Morrisons for over three years, and we are pleased to be expanding our relationship together.”