Ocado has announced a tie-up with Australian retailer Coles, which will see the latter adopt the online specialist’s Ocado Smart Platform to develop its online grocery arm.
As part of the agreement, Coles and Ocado have agreed to develop two customer fulfilment centres (CFCs), one in Sydney and one in Melbourne, which are expected to go live within the next four years.
Coles will also transfer its store-pick based solutions to the Ocado Smart Platform Solution, with the roll-out set to take place in parallel with the CFCs going live.
Coles operates 818 supermarkets, 911 off-licences and 712 Coles Express forecourt outlets across Australia.
Continuing Transformation
“Today marks another big moment in the continuing transformation of Ocado,” commented Tim Steiner, its chief executive.
“Our unique, proprietary and industry-leading technology is bringing new growth opportunities to retailers around the world and changing the customer experience of grocery shopping. Coles is a grocer with a global reputation for innovation and outstanding commitment to their customers, and I am delighted we will be working together in the years to come to reshape the food retail landscape in Australia,” added Steiner.
Ocado reported that it expects the deal to create ‘significant long-term value’ for the business, and that the impact of the transaction will be earnings negative in the current financial year.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
