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Gulf Press > Business > Ocado Expands Aeon Partnership with Proposal for Third Automated Warehouse
Business

Ocado Expands Aeon Partnership with Proposal for Third Automated Warehouse

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Last updated: 2024/07/08 at 11:05 AM
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British online supermarket and technology group Ocado has announced an expansion of its partnership with Japan’s Aeon by planning to build a third robotic warehouse in Japan. The new customer fulfilment centre (CFC) will be located in Kuki-Miyashiro, in the Saitama prefecture of Japan, and is set to go live in 2027. This expansion comes as a positive development for Ocado, especially after its Canadian supermarket partner Sobeys decided to pause the opening of a fourth robotic warehouse, leading to a decline in Ocado shares.

The exclusive partnership between Ocado and Aeon was established in 2019, with the first CFC in Chiba-city already operational since last year, serving customers in the Kanto region. A second CFC based in Hachioji is scheduled to go live in 2026. Along with the network expansion, the partnership will also involve Aeon upgrading its live operations with the latest Ocado technologies, including the introduction of “On-Grid Robotic Pick.” This technology is expected to enhance labour productivity levels within Aeon’s operations, making them more efficient and streamlined.

The decision to build a third robotic warehouse in Japan signifies the growing importance of the partnership between Ocado and Aeon and their commitment to enhancing the online grocery shopping experience for customers in Japan. The strategic location of the new CFC in Saitama prefecture will allow for improved delivery services and faster order processing, benefiting both the companies and the customers. Additionally, the integration of advanced Ocado technologies will ensure that Aeon stays at the forefront of innovation in the online grocery sector.

The expansion of the partnership between Ocado and Aeon comes at a crucial time when the demand for online grocery shopping is on the rise globally. By leveraging the expertise and technology of Ocado, Aeon aims to solidify its position as a leading online supermarket in Japan and cater to the evolving needs of customers. The introduction of robotic pick technology is a significant step towards automation and efficiency, enabling Aeon to handle a larger volume of orders and deliver them in a timely manner. This will not only improve customer satisfaction but also reduce operational costs for Aeon.

With the increasing competition in the online grocery sector, maintaining a competitive edge is essential for companies like Ocado and Aeon. By expanding their partnership and investing in cutting-edge technologies, the companies are positioning themselves for long-term growth and success in the Japanese market. The collaboration between Ocado and Aeon demonstrates a shared commitment to innovation and customer satisfaction, setting a benchmark for online grocery retailers in Japan. As the online grocery industry continues to evolve, partnerships like these will play a crucial role in driving growth and delivering exceptional value to customers.

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News Room July 8, 2024
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