Tesco has inked a deal with House of Fraser to sell the premium department store group’s goods through its website.

The plan is to be unveiled by Tesco boss Philip Clarke this week when he is expected to report a further decline in sales at the grocer.

House of Fraser will benefit from Tesco’s huge customer base and marketing  budget while Tesco will be able to extend its reach into premium products following the deal.

Tesco will hope the deal will help it turn around its fortunes after a challenging period for the grocer which has seen the hard discounters eat into its share at one end and Waitrose steal customers at the other.

It also marks the first significant deal by House of Fraser after it was acquired by Chinese conglomerate Sanpower for £480m in April.

Tesco inks deal to sell House of Fraser products online