Bradford-based Morrisons is set to start selling groceries online by the end of the year after reaching a deal with delivery firm Ocado.
Morrisons' boss Dalton Philips said the operation would become a significant player in the home delivery market within three years from a standing start.
The supermarket has defended its late move into online food retailing, claiming it would be able to learn from the mistakes of others to get the operation right.
The launch of the new service will see Morrisons use Ocado’s recently opened distribution centre in Warwickshire for deliveries through a Morrisons-liveried fleet.
The 25-year deal, which involves Morrisons paying up to £170 million to Ocado to acquire the site and equipment, is controversial because Ocado is already linked with Waitrose, exclusively delivering the supermarket’s products.
Dalton Philips said: ‘‘This agreement is a significant strategic step for Morrisons. From a standing start, Morrisons will be competing in the fast-growing online channel by the end of this year with a really compelling proposition.’’