Coles partners with Ocado to boost its online grocery shopping business

Ocado will provide the technology and software necessary for Coles to further increase its online retailing operations.

British online supermarket pioneer Ocado has signed a partnership agreement with Australia’s Coles Group.

Through the deal, leading Australian fuel and grocery retailer Coles will use Ocado’s technology and software to developed their online grocery business. Coles is the latest of a long list of retailers to enhance the transition from brick-and-mortar stores to the online market.

Two highly automated distribution centres, one located in Melbourne and another in Sydney, are expected to be operational within four years.

“Ocado’s ongoing investment and retail partnerships around the world will help us continue to improve our offer into the future,” said Steven Cain, CEO of Coles.

Coles is one of Australia’s largest retailers, trading from 818 supermarkets, 911 liquor stores, and 712 Coles Express petrol stations across the country and generating sales in full year 2018 of A$39.4 billion (£22 billion).

Under the services agreement, Coles will pay Ocado fees for the installation and maintenance of the equipment within the robotic-based centres and licensing of the OSP software.