UK online grocer Ocado has inked a deal with Canada’s second largest supermarket group Sobeys, for the launch of its online ordering platform and delivery operations.

The Ocado Group will be providing the Canadian food retailer with online grocery ordering capabilities, automated fulfilment and home delivery solutions. This will include front-end website functionality, mobile grocery ordering applications, the construction of an automated warehouse designed specifically for grocery e-commerce, and last-mile routing management technology to optimise truck deliveries.

Sobeys and Ocado will develop their first customer fulfilment centre (CFC) in the Greater Toronto area, with the build expected to take approximately two years. In addition to this initial warehouse, Sobeys and Ocado are to consider developing other CFCs in Canada’s urban areas.

Sobeys Inc.’s president and CEO, Michael Medline, said: “Sobeys intends to play to win in Canadian online grocery shopping. 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,” he continued. “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.”

Luke Jensen, CEO of Ocado Solutions, added: “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. We are pleased to be partnering with innovative and forward-looking retailers such as Sobeys.”

Headquartered in Nova Scotia, Sobeys Inc. was established in 1907 and now owns, affiliates or franchises approximately 1,500 stores in all 10 Canadian provinces, with retail brands including Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods and Lawton’s Drug Stores.

This is the second international deal for Ocado Solutions – the division of Ocado responsible for corporate partnerships – following an agreement with Groupe Casino to develop the retailer’s online business in France.

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