Online retailer, Ocado has said that it has entered into agreement with Morrisons allowing the supermarket to sell its food online.

Its largest supplier and rival Waitrose has appointed lawyers to study the agreement between the two firms. On the other hand, the agreement was well received by the investors and the shares of the company touched 351p, which is its highest ever achieved in May. It is expected that the agreement will expand the company's presence and may help in improving earnings.

Ocado employs about 6000 people and the company had said in May that it has started the year with strong performance. The company's earnings are expected to rise to £18.1 million during the first half of the year mainly while its net revenues are expected to rise to £355.8 million. The group is also expected to report a pre-tax loss of £2.4 million for the period compared to an underlying profit of £400,000.

The agreement to sell food online might attract more customers in the UK to the site and will boost revenues as customers are increasingly looking for online deals for making purchases.