Supermarket giant Morrisons has awarded DHL Supply Chain with a six-year agreement to handle its wholesale logistics operations.

The new agreement will see DHL support Morrisons with order fulfilment, store delivery and IT services as part of the retailer’s wholesale operations, starting with 1,650 stores in the McColl’s Retail Group, exclusively served by Morrisons under its Safeway wholesale brand.

The operation will require 200,000 sq ft of warehousing space and 200 vehicles from five strategically located picking centres, in Bury, Lutterworth, Livingston, Bridgewater and Allington. The contract will create 550 new jobs.

DHL was appointed for its proven expertise in the fast-paced grocery and convenience sector as well as its IT capabilities and infrastructure.

“As we continue to grow our wholesale business, we are confident that DHL will provide the services and experience needed to serve our customers well,” said Morrisons’ supply chain director Graeme Douglas.