Yorkshire supermarket chain Morrisons signs up to 'multi-year' deal with Amazon

Yorkshire supermarket chain Morrisons has signed up to a new multi-year agreement with online giant Amazon as the supermarket attempts to keep pushing further into the wholesale market.

Chief executive David Potts revealed the deal, which will enable more shoppers to order Morrisons products for same day delivery on Amazon - expanding on a previous trial.

The company said it had agreed a rolling contract with Amazon and "will be exploring new opportunities to innovate and improve the shopping experience for both Morrisons and Amazon customers".

The deal with Amazon comes as the supermarket revealed its 14 consecutive quarters of growth have come to an end, with sales in the three months to August 4 falling 1.9% on a like-for-like basis.

Bosses pointed out the fall was due to the strong comparison with last summer, which had better weather and major sporting events.

Total revenues for the six months to August 4 rose 0.4% to £8.83 billion and pre-tax profits were up 48.5% to £202 million, leading to the payout of a second special dividend this year.

But the primary focus for Morrisons is on expanding its wholesale business, with Mr Potts saying he wants to see more of his products in high streetconvenience stores.

A trial with McColl's to provide food and drink is progressing well, according to the company, as a new forecourt partner and export partner were unveiled.

Shares in Morrisons opened up 7.3p at 201.3p, with analysts reacting positively to the news, saying it could be a sign of a slight recovery in the grocery market.

Bruno Monteyne, retail analyst at Bernstein said: "Doomsday will have to wait another year.

"We think this set up bodes well for the other grocers in coming weeks."