Australia's largest retailer Woolworths Ltd is looking to expand its Thomas Dux Grocer banner in New South Wales and Victoria.

Woolworths said today (13 May) that it had struck a deal to buy nine store leases from Macro Wholefoods.

The retailer has two Thomas Dux outlets in Sydney and the deal will see up to eight existing Macro stores re-badged.

The agreement will also see Woolworths buy a development site and the Macro organic private-label brand.

"Macro Wholefoods sites across Sydney and Melbourne are well positioned in popular locations that are desirable and accessible to our target market," said Thomas Dux general manager Pat McEntee.

Financial details were not disclosed.