Morrisons has signed up to a new multi-year agreement with online giant Amazon in a bid to push further into the wholesale market.

Morrisons expands same day Amazon delivery deal

The UK supermarket giant has 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".

Same-day online grocery home delivery is available to Amazon Prime Now customers in Leeds, Manchester, Birmingham and parts of London and the home counties. Customers can order a full Morrisons shop online and have their goods delivered by Amazon.

Many customers have an option for delivery within one hour of placing the order. This service, which costs £7.99, will begin to be rolled out to Glasgow, Newcastle, Liverpool, Sheffield and Portsmouth this year, and to other cities across the UK in coming years. Two-hour delivery is free for orders over £40.

Doug Gurr, the Amazon UK country manager, said: “We are committed to growing our grocery business and continuing to innovate and deliver the things our customers will always care about including low prices, vast selection, and fast delivery. Our relationship with Morrisons is an important part of this growth.”

The news came as Morrisons reported a 1.9% fall in like-for-like sales in the three months to 4 August, its second quarter. It was the group’s first quarterly sales decline since 2015, but slightly better than analysts had expected. Last year, sales rose 6.3%, boosted by warm weather, the World Cup and the royal wedding.