Canadian supermarket chain Sobeys has made an agreement with e-grocer Grocery Gateway that may enable Sobeys to expand into online commerce.

The deal will see Sobeys supplying Grocery Gateway with its Our Compliments and Smart Choice private label goods and will extend the e-grocer's product range to over 10,000 items.

Sobeys, Canada's second-largest supermarket chain, has not however invested in Grocery Gateway and is not looking to acquire the business. It is instead a wholesale-supply agreement, reported the Globe and Mail.