Ocado has signed a technology partnership with Japanese retailer Aeon to help it establish an online grocery business.
The deal, the British firm’s first in Asia, will see Aeon use the Ocado Smart Platform (OSP) to develop a network of automated customer fulfilment centres (CFCs) and software applications to serve its customers across Japan. The first CFCs are expected to become operational by 2023 with initial sales capacity greater than ¥200bn (£1.42bn).
Aeon is one of Asia’s largest retailers with around 21,000 stores across various businesses, with operations in 14 countries.
The Japanese firm will pay Ocado upfront fees upon signing and during the development phase, then ongoing fees linked to both sales achieved and installed capacity. Ocado stated that it expects to record an additional £25m in operating costs next year to cover development charges.
Luke Jensen, CEO of Ocado Solutions, said: “Japan is one of the most high tech economies in the world. It is also a unique and exciting market for grocery ecommerce, with sales primed for huge growth in the coming years.
“Aeon is a giant of Japanese retail with a long-standing commitment to delivering outstanding grocery experiences to its customers. I am delighted that they have chosen the Ocado Smart Platform to build on this commitment, bringing cutting-edge innovation and the learnings from a global network of world-class retailers to their ecommerce operations.”
Motoya Okada, Chief Executive of Aeon, added: “We see Ocado as a state of the art, exciting and transformative partner aligned with our strategy of accelerating Aeon’s Digital Shift to serve Japan’s consumers.”
Ocado has signed a string of technology deals in the last few years with supermarket groups around the world, including Kroger, Coles, Casino, and Sobeys.
Shares in the company Ocado jumped more than 10% in early trading today, leaving them up around 70% this year.
NAM Implications:
- A good start in Asia for Ocado…
- …and another step on the way to building a global standard in online fulfilment…
- …with a two-way learnings flow that can be optimised elsewhere.
- In other words, opportunities for suppliers that build their offering around Ocado…
