DHL Supply Chain is to manage wholesale logistics operations for Morrisons after winning a new contract with the supermarket.

The contract will see DHL deliver Morrisons' Safeway-branded products to 1,650 McColl's Retail Group stores. Morrisons announced it would be reintroducing the Safeway brand at the end of 2016, more than 10 years after the last goods with the name were sold.

By moving into the wholesale space, DHL said, Morrisons is using its existing assets to tap into the UK's growing convenience market.

As well as delivery to stores, DHL will provide IT infrastructure and order fulfilment as part of the deal.

The operation will be based across five picking centres in Bury, Lutterworth, Livingston, Bridgewater and Allington. Utilising 200 vehicles and 200,000ft² of warehousing space, the deal will create 550 new jobs.

Morrisons supply chain director Graeme Douglas said: “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.”

While the wholesale operation is new business for DHL Supply Chain, the operator has been working with Morrisons for more than 20 years.