Amazon.com has signed a deal with Marks and Spencer to run the high street retailer's online store. Amazon will provide the technology behind the M&S website as well as systems for in-store and telephone ordering and customer service.

M&S already runs an e-commerce site attracting an average two million visitors a month but does not reach its full potential, according to Steven Sharp, director for marketing and e-commerce at M&S.

"A partnership with Amazon will help us achieve this, while allowing us to concentrate on our core business of retailing," he said.

The first phase of the project is scheduled to be completed by the summer of 2006 and will integrate in-store, internet and telephone ordering services.

The deal is Amazon's first in the European market for retail services through its newly formed Amazon Services Europe unit.

Amazon already provides the e-commerce infrastructure for American retailers including Target, Toy 'R' Us and Borders.