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Sobeys, Ocado partner on online grocery platform in Canada

Published 24 January 2018

Sobeys has signed an agreement with Ocado Group to launch an online grocery ordering, automated fulfillment and home delivery solution in Canada.

Sobeys' end-to-end online grocery shopping business will be built on the Ocado Smart Platform. With more than 15 years at the forefront of innovation and success in grocery e-commerce, Ocado will partner exclusively in Canada with Sobeys to launch online grocery shopping services, including:

best-in-class, front-end web site functionality, supported by its proprietary 'web shop' and mobile grocery ordering applications

construction of Ocado's latest generation, state-of-the-art automated warehouse designed specifically for grocery e-commerce (in which Ocado will invest to install its grid and robots)

last-mile routing management technology to optimize delivery truck efficiency, customer service excellence and punctuality.

Sobeys and Ocado will develop their first Customer Fulfillment Centre (CFC) in the Greater Toronto Area. The build is expected to take approximately two years.

In addition to this initial CFC, Sobeys and Ocado will consider developing other CFCs in Canada's urban areas.

Sobeys president & CEO Michael Medline said: "Sobeys intends to play to win in Canadian online grocery shopping. We are very excited to bring this best-in-the-world grocery e-commerce experience to Canadian customers.

"This unique and innovative Sobeys and Ocado experience will offer consumers the biggest selection, freshest products and most reliable delivery available anywhere on the planet. Our end-to-end e-commerce solution will allow Sobeys to build an online offer in a manner that is profitable and creates exceptional value for our customers, investors and supplier partners."

Ocado Group CEO Tim Steiner said: "We are delighted to be working with one of the leaders in North American grocery retailing. Sobeys is a highly successful and much admired Canadian business and we are proud that they have chosen Ocado Solutions to partner with to build their online grocery business.”

Ocado Solutions CEO Luke Jensen said: "Channel shift to online in North America is gaining pace as consumers increasingly seek the benefits of grocery shopping from the comforts of their own homes, and as retailers attempt to offer services to meet this growing customer trend.

“We are pleased to be partnering with innovative and forward-looking retailers such as Sobeys. Soon, four of the world's most ambitious grocery retailers online – Ocado, Morrisons, Groupe Casino, and Sobeys – will be powered by the Ocado Smart Platform and we look forward to welcoming more to this list going forward".

Ocado will provide a comprehensive and customized suite of support and engineering services to enable a smooth launch and sustainable e-commerce operations. Sobeys and Ocado will also partner to incorporate ongoing learning and innovation from Ocado's global experience into their Canadian platform.



Source: Company Press Release