Woolworths Ltd will expand its Thomas Dux Grocer stores in NSW and Victoria with the acquisition of store leases from Macro Wholefoods.
Woolworths currently has two Thomas Dux stores operating in Paddington and Lane Cove in Sydney.
The deal, will see up to eight existing Macro stores re-badged as Thomas Dux.
Thomas Dux general manager Pat McEntee said the Macro Wholefoods acquisition would provide the ideal platform for building the Thomas Dux network.
"Macro Wholefoods sites across Sydney and Melbourne are well positioned in popular locations that are desirable and accessible to our target market, said Mr McEntee," Mr McEntee said.
The also includes the acquisition of a development site and the Macro organic private label brand.
Existing Macro staff of those stores will be offered roles within Thomas Dux or other Woolworths brands.
Specific details of the acquisition were commercial-in-confidence and were not released.