Supermarket WM Morrison Supermarkets PLC (LON:MRW) could announce as soon as Tuesday Morning that it has reached a deal to take capacity at an Ocado (LON:OCDO) warehouse in Erith, Kent, according to Sky News reports on Monday.
The news, which has been mooted since an outline agreement was announced earlier this year, will include Ocado providing a store-picking service to Morrisons, and paving the way for a more comprehensive UK-wide home delivery business.
Morrisons.com currently serves roughly half of UK households, putting the company at a disadvantage to rivals such as Tesco (LON:TSCO) and J Sainsbury (LON:SBRY).
WM Morrison shares closed up 1.6% at 187.76p in London on Monday, having progressively gained throughout the session. Ocado shares closed up 6.3% at 276.28p.