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Sobeys Inks Deal With Ocado Group to Build Online Shopping Business

Sobeys Inks Deal With Ocado Group to Build Online Shopping Business

STELLARTON, NS - The e-commerce wars are far from over—Sobeys announced it has signed an agreement with Ocado Group that the retailer said will create “the world’s leading online grocery ordering, automated fulfillment, and home delivery solution.”

Michael Medline, President and Chief Executive Officer, Sobeys“Sobeys intends to play to win in Canadian online grocery shopping,” Sobeys President and CEO Michael Medline stated. “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 Truck

According to a press release, Sobeys’ end-to-end online grocery shopping business will be built on the Ocado Smart Platform. Ocado has been working for more than 15 years in Britain to innovate in grocery e-commerce, and will partner exclusively in Canada with Sobeys to launch the following services:

  • 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

Tim Steiner, Chief Executive Officer, Ocado“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,” said Tim Steiner, Ocado’s CEO.

In helping to implement the new partnership Sobeys and Ocado will together develop a Customer Fulfillment Centre (CFC) in the Greater Toronto Area that is expected to be finished in 2020. The press release also noted that other CFCs in Canada’s urban areas are under consideration.

Luke Jensen, Chief Executive Officer, Ocado Solutions“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,” added Luke Jensen, CEO of Ocado Solutions. “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.”

To enable a smooth and sustainable e-commerce operation, Ocado will provide a customized suite of support and engineering services, as well as partner with Sobeys to incorporate ongoing learning and innovation from Ocado’s global experience into their Canadian platform.

For more on this step by Sobeys to dig its heels into e-commerce, AndNowUKnow will keep you up-to-date.

Sobeys Ocado Group