Ocado has signed a partnership agreement with Australian grocery retailer Coles. This is its fifth major overseas deal in the last 18 months.
Coles is one of Australia’s largest retailers, with 818 supermarkets, 911 off-licences, and 712 petrol stations across the country. It generated sales in full year 2018 of A$39.4bn (€24.8bn).
The deal will see Ocado’s technology and software develop the Coles Online grocery business in Australia. The Coles Online plan is to serve customers in Australia’s larger urban areas by fulfilling orders through Ocado’s distribution centres, with customers in less populated areas benefiting from Ocado’s store-pick software. Two robotic distribution centres, one in Sydney and one in Melbourne, will be constructed and operational in four years, as a result of the partnership.
Coles will pay Ocado upfront fees upon signing and during the development phase, then ongoing fees linked to both sales achieved and distribution and service criteria.
Source: Reuters / Transport Intelligence
