A possible tie-up between Morrisons and Costcutter has moved a step closer after Costcutter’s owner Bibby clinched a deal to manage five Morrisons depots.

The deal - which comes just weeks after The Grocer revealed Morrisons had held talks with Costcutter to gain a proper foothold in the convenience sector - will see Bibby Distribution manage five of Morrisons’ 13 regional consolidation centres in Yorkshire, the East Midlands, the South East, Staffordshire and the South West.

Prior to the deal, Morrisons managed five depots, DHL five, Norbert Dentressangle two and Wincanton one.