Ocado Group is planning to build a robotic third warehouse with its Japanese retail partners.
The online supermarket group and technology company announced that it would expand its partnership with Aeon – Japan’s largest grocery retailer – by launching another customer fulfillment centre.
In 2027, the third automated warehouse of Ocado will be opened in Kuki Miyashiro.
Ocado investors were reassured by the news after Ocado revealed last month Sobeys had suspended plans to open a fourth robotic warehouse . Sobeys & Ocado have also agreed to terminate their mutual exclusivity contract, which was seen as a blow for the overseas rollout Ocado’s “smart platform”, its end-to end fulfilment and logistic offering.
Ocado has also had to deal with the recent decision of Kroger, an important partner in the United States to close three smaller websites powered by the British Group, casting doubt on its future growth prospects.
Ocado Retail is another point of contention. It’s a joint venture between Marks & Spencer and Ocado. Ocado and the high-street retail chain are fighting over a final payment of millions of pounds after their partnership failed to meet performance targets.
Ocado shares have fallen by over 50% this year, and the company has been removed from the FTSE 100. They rose 17 3/4p or 5.4 percent to close at 346p. Tim Steiner, the 54-year-old chief executive of the company, had praised the expansion plan for the group with Aeon, as a means of strengthening their “strong relationship”.
He said: “As shown by the state of the art customer fulfilment center live in Honda, Ocado helps Aeon provide a seamless experience for online grocery customers throughout Tokyo. We are excited to offer this service to more customers over the next few years.
Tim Steiner, co-founder of Ocado and chief executive officer is Tim Steiner
Ocado and Aeon entered into an exclusive partnership in 2019. In 2018, a first fulfillment centre was opened in Chiba. In 2026, a second centre in Hachioji will be operational.
Aeon, in addition to expanding its network, will upgrade their live operations using the latest Ocado technology. It includes “on-grid robot pick”, which is a robotic picking and packing system. Aeon said that this would increase the productivity of its operations.
Retail analyst Nick Bubb said: “Ocado shares haven’t received much good news lately, regarding the much-vaunted licensing deals overseas, but will be happy to hear that the partnership with Aeon, the mighty Japanese company, is moving forward.”
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