J Sainsbury PLC (LON:SBRY) has agreed a partnership with Australian retailer Coles Group Ltd (ASX:COL) to supply food and groceries not available in either market.
Under the deal, Coles will from next year start accessing the FTSE 100-listed retail giant's supply chain to expand its own-brand range, with the UK grocer also exploring options to "bring a distinctive proposition to UK customers".
READ: Sainsbury's statutory interim profits fall 92%
Sainsbury's said it was a key part of a plan to build its wholesale business, an area where rivals Tesco's and Morrisons are some steps ahead.
The Coles news comes a week after Sainsbury’s released its interim results, reporting a 15% drop in underlying profit before tax to £238mln compared to the same period last year, due to higher marketing costs, “tougher” weather compared to last year and the timing of cost-cutting efforts.
Shares were little changed at 201.3p on Monday morning.