Food from the supermarket chain Iceland is sold in the home and garden store the Range.
The new “strategic alliance” will initially be introduced in three stores in the Midlands and Liverpool areas.
In a joint statement, the companies said plans for a further roll-out of the “shop-in-shop” concept to follow.
Iceland, which is based in Wales, has said that the two chains are “natural partners”, while The Range is declared that the alliance was “unique”.
Frozen, grocery, which employs more than 700 people at its Deeside base in Flintshire, saw sales rise 8% to more than £3 billion last year.
It has also been named UK top supermarket for customer satisfaction for the first time this year.
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Iceland’s president, Sir Malcolm Walker said: “the ethos of The Range – to bring our customers quality products at the most competitive prices – it is absolutely identical to Iceland.
“I have the feeling that make us natural partners in this new alliance. We look forward to making our unique range of food products available to more customers in a new type of position, where we hope to extend our appeal to reach the people who have not shopped at Iceland before.”
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The Range, the Devon-based company that opened its first store in 1989, has 150 stores throughout the UNITED kingdom.
He said that the partnership is to provide customers with a “one-stop-shop and access to more than 80,000 different products under a single roof”.
“This alliance is so exciting,” founder Chris Dawson added.