Morrisons’ partnership with Amazon for same-day online grocery delivery to Prime members in the UK will be extended nationwide by the end of May, to more than 40 stores, up from the current 17. Prime Now customers in over 90% of Greater London postcodes and the other ten largest cities by population, including Edinburgh, Cardiff and Bristol, will be able to order from Morrisons using Prime Now.
Morrisons is energetically increasing its online delivery capacity, through partnerships with third parties such as Amazon and Deliveroo, as the coronavirus leads to higher online demand. It joins Marks & Spencer which recently expanded its Deliveroo partnership, as well as many international grocers, such as Woolworths (AUS) which has partnered with Uber. The move also comes one day after Dia in Spain expanded its partnership with Amazon Prime Now, demonstrating Amazon’s intent to move deeper into grocery.
CPG brands will be challenged by the increasingly private label-driven portfolio of Amazon’s partnership arrangements. To stand out in a context of limited visibility and automated product suggestions, brand suppliers will need to leverage Amazon’s search engine optimization tools, as well as elevate their content to distinguish their products. Brands should also accelerate ecommerce capability-building to prepare for a new normal in which food ecommerce captures an enhanced share of grocery shopping missions.
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