Supermarket chain Morrisons and online supermarket Ocado have come to a new arrangement that will see the supermarket deliver to more areas in Britain, as well as reducing the fees Morrisons has to pay the online grocer.

Figures show that shares increased for both companys, with Morrisons rising 1.5% at 190.9p and Ocado increasing 2.6% to 283.5p.

Changes that have been made to the contract are: the restriction on store pick has been lifted, the profit share agreement will be cancelled and the research & development (R&D) fee will be reduced.

Commenting on taking space in Ocado’s new warehouse in Erith, it said it would allow "millions more customers to shop with Morrisons.com".

Meanwhile, Ocado is to develop a ‘store pick’ solution for Morrisons.com. Prior restrictions will be lifted, enabling Morrisons to fulfil online orders via the store pick function anywhere in Britain, including all areas the company does not currently cover.

When the store pick goes live, Morrisons contractual duty to share a percentage of profits with Ocado will stop, as well as exclusivity restrictions on Ocado being reduced, although it will still be prohibited from serving certain grocery retailers.

Chief executive at Morrisons, David Potts, said: "The new investments in online growth are further examples of Morrisons building a broader business and will allow millions more customers all over Britain to enjoy Morrisons good quality fresh food and great value for money. As food maker and shopkeeper, we continue to 'follow the customer' and move towards achieving capital light, profitable growth online."