Supermarket giant Coles has inked a multimillion-dollar deal with Singtel Optus to connect hundreds of its stores and warehouses to the national broadband network.

Optus will join Coles' flybuys loyalty scheme under the multi-year partnership, and will develop a range of mobile and internet products for Coles customers.

The partnership covers corporate telco access, and collaboration on consumer products. Credit:James Alcock

The deal, flagged by The Age and The Sydney Morning Herald last month, comes as Coles steps up its investment in data and automation and will be a healthy earner for the government-backed NBN Co.

Coles' chief information officer, Roger Sniezek, said the upgrade from copper-based internet connections to high-capacity fibre at its more than 2400 stores, warehouses and support offices would enable the business to start using a range of new applications and technology.