Amazon struck a deal to get food from Morrisons, one of the largest grocers in the U.K., for its Prime Now and Pantry services in the country.
Amazon.com on Monday made waves in the United Kingdom supermarket industry by striking a deal to get food products from Morrisons, one of the country’s largest grocers, to deliver to customers.
The move strengthens Amazon’s bid to carve itself a space in the U.K.’s fast-growing online grocery market, which consultancy IGD estimated at $12 billion in 2015.
It comes three months after the Seattle tech giant launched its Pantry business, which offers 4,000 household items, from “nappies” to pet food, in Great Britain. Pantry customers pay a fee per box, which is delivered the next day.
Separately, Amazon has been ramping up same-day delivery for Prime members through Prime Now; the service is now available in Liverpool, Manchester, London, Birmingham and Newcastle.
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In its news releases, Amazon claims one Prime Now shipment of popular video game “Call of Duty: Black Ops III” took 15 minutes from order to delivery in Birmingham.
Morrisons said in a release that the wholesale-supply deal will give Amazon Prime Now and Amazon Pantry customers “access to a wide range of Morrisons’ ambient, fresh and frozen products” in the coming months.
“Today’s agreement is built on Morrisons’ unique strengths as a food maker,” the grocer’s CEO, David Potts, said in a statement. “The combination of our fresh-food expertise with Amazon’s online and logistics capabilities is compelling.”
Morrison was the third-largest retailer in the U.K. in 2013 and the 36th-largest retailer in the world, according to a list published last month by the U.S. National Retail Federation.
The U.K. is a key market for Amazon, which this month announced it had finished building a 1 million-square-foot fulfillment center in Leicestershire, its 10th in the country.
The company says it plans to create 2,500 permanent jobs in 2016, bringing its workforce there to 14,500. In addition to the fulfillment centers, Amazon is building in the U.K. data centers for its cloud-computing business and a studio for fashion photography.
Shares of Morrisons’ parent company, WM Morrison Supermarkets, rose 5.91 percent Monday on the London Stock Exchange, while shares for many of its competitors tanked. Tesco saw its stock drop 2.74 percent, while Ocado Group, an exclusively online U.K. grocer, fell 7.77 percent.