The distribution arm of Bibby, which owns Costcutter, has announced a deal to manage five Morrisons depots across the country.

The move follows rumours of a potential agreement with Costcutter and Morrisons, with the latter repeatedly expressing an intention to expand in the convenience store sector.

Under the new deal, Bibby Distribution will manage Morrisons’ regional consolidation centres in Yorkshire, East Midlands, the South East, Staffordshire and the South West.   

Bibby Distribution chief executive Iain Speak said: “This is a strategic business win for Bibby Distribution with a well-respected, forward thinking retailer. We look forward to starting off with this significant consolidation initiative and further developing our relationship and business with Morrisons over the coming years.”

The deal follows the introduction of IN MOTION, a new Morrisons initiative aimed at improving efficiencies in the supply chain and reducing costs by utilising empty legs with full truck load returns on Morrisons’ own fleet.