Free Subscription

  • Access 15 free news articles each month

Professional

Try one month for $5
  • Unlimited access to news,insights and opinions
  • Quarterly and weekly magazines
  • Independent research reports and forecasts
  • Quarterly webinars with industry experts
  • Q&A with retail leaders
  • Career advice
  • Exclusive Masterclass access. Part of Retail Week 2021

Coles scores exclusive deal with the world leader in online grocery

Supermarket giant Coles has entered into an exclusive services agreement with the world’s leading online grocery platform, Ocado, to double its home delivery capacity in Australia by the end of the 2023 financial year.

Over the next four years, the supermarket will spend $130 million to $150 million on the construction and development of the project, which will give the retailer access to Ocado’s online grocery website, automated single-pick fulfilment technology and home delivery solution.

As part of the deal Ocado will install and maintain equipment for Coles in new automated customer fulfilment centres outside Sydney and Melbourne, which are expected to be operational by the 2023 financial year.

Each centre has an estimated sales capacity of between approximately $500 million and $750 million per annum.

The new deal is expected to offer customers a seamless digital customer experience, greater range, improved product availability and freshness, as well as more regular delivery windows. The partnership means increased network capacity at a lower cost to serve and is expected to double Coles’ current home delivery capacity.

“Ocado is singularly focused on online grocery shopping, and as a result, has become the leading solution provider in the world. We are delighted to be partnering with them to make life easier for Coles’ customers here in Australia. Ocado’s ongoing investment and retail partnerships around the world will help us continue to improve our offer into the future,” Coles CEO Steven Cain said.

Customers outside of metropolitan Melbourne and Sydney will have access to Ocado’s website, whereby orders will continue to be fulfilled by the existing store-based network, which will continue to evolve over the coming years.

“We are delighted to partner with Coles,” Luke Jensen, CEO of Ocado Solutions, said. “Already a leading player in online grocery retailing in Australia, we are proud that they have chosen the Ocado Smart Platform to take them to the next level. Our flexible, scalable and modular solution will help them bring new levels of convenience, choice and value to Australian consumers. The Australian market is changing as consumer needs evolve and our platform will enable Coles to lead this transformation in a profitable and sustainable way.”

Ocado CEO Tim Steiner said he is delighted to be working with Coles “to reshape the food retail landscape in Australia”.

Ocado has over 15 years’ experience in grocery market innovation and recently signed a deal with British retailer Marks and Spencer to boost its online grocery experience.

This story first appeared on sister site Inside FMCG.

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.

You have 7 free articles.

Masterclasses are for professionals only

Only $5 p/m for first 3 months
Become a Professional Already a professional? Login
  • Daily exclusive Members Only content straight to your inbox
  • Access to exclusive Retail Week events including all 4 Masterclasses 28 February - 3 March
  • Retail insights and intelligence
  • On-demand videos with industry professionals
  • Weekly careers advice specific to retailers
  • Independent research reports and forecasts
  • Q&A with industry experts
  • Content, content, content! Weekly and quarterly magazines