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Ocado Expands Aeon IT Partnership with Plans for Third Robotic Warehouse in Japan

IT Services

Business Honor
08 July, 2024

British Online Supermarket Continues Global Growth Amid Setbacks with Canadian Partner

Ocado, the British online supermarket and technology group, announced plans to strengthen its partnership with Japan’s Aeon by constructing a third robotic warehouse. This new customer fulfilment centre (CFC) will be located in Kuki-Miyashiro, Saitama prefecture, and is scheduled to go live in 2027.

This expansion is a significant boost for Ocado, especially following last month’s announcement that its Canadian partner, Sobeys, had paused the opening of a fourth robotic warehouse, causing Ocado shares to slump.

Ocado and Aeon have been in an exclusive partnership since 2019. The first CFC, located in Chiba City, began serving customers in the Kanto region last year. A second facility, based in Hachioji, is set to become operational in 2026. The addition of the third warehouse underscores the growing success of their collaboration.

Beyond expanding the network, Aeon will also upgrade its current operations with Ocado’s latest technologies, including the "On-Grid Robotic Pick" system. This upgrade is expected to significantly enhance labor productivity within Aeon’s operations, leveraging Ocado's cutting-edge advancements in automation.

Tim Steiner, CEO of Ocado, expressed enthusiasm about the partnership's progress. "Our continued collaboration with Aeon not only strengthens our presence in Japan but also highlights our commitment to delivering state-of-the-art technology to improve efficiency and customer satisfaction," he said.

This development marks another milestone in Ocado’s mission to revolutionize the grocery industry with innovative technology, promising more efficient and productive operations for its partners. As the company navigates challenges with other partners, the expanding partnership with Aeon signifies a robust and promising future for Ocado's global endeavors.