Ocado Group inks new automated customer fulfilment centre deal with unnamed European retailer
Ocado Group has announced an agreement to build a large customer fulfilment centre for a "fast growing European national retailer". The specific retailer has not been named, but we do know that Ocado will install its latest technology into the facility and it is due to go live in FY28.
The company has taken the final unit at Indurent Park Stoke Central, a 530,000 square foot industrial and logistics space on the 300-acre Festival Park development in Stoke-on-Trent. The site will be equipped with Ocado’s Re:Imagined technology suite, including the 600s bot, On-Grid Robotic Pick (OGRP), and a fully automated freezer.
Plans are afoot for the unnamed retailer to quickly transfer its existing online order volumes into the CFC, with the site expected to go live with utilisation at just over half of its design capacity.
Tim Steiner, Chief Executive at Ocado Group, says: “I’m delighted that our world leading automation and robotics have been chosen to help drive forward the online operations of another leading retailer. Together with our agreement with Asda earlier this year, this partnership highlights the growing demand for our solutions across the breadth of our technology offering.”
Asda
In May, Ocado Group and Asda announced a partnership to develop the former’s online business across the UK with the Ocado Smart Platform. The focus of the tie up will be to quickly replace and upgrade Asda’s existing e-commerce infrastructure, with Ocado’s solutions to be rolled out across both stores and dark stores from 2027.
The pair plan to deploy Ocado’s end-to-end solutions across Asda e-commerce operations. These include Ocado’s front-end (webshop), In-Store Fulfilment, and software to support last mile planning and route efficiency. Go live is set for early 2027. Using Ocado’s Smart Platform, Asda say it will be able to offer a full range of online services, including scheduled and short lead-time orders, as well as Click & Collect. It will also use the platform to fulfil and deliver orders placed through aggregator platforms such as Uber Eats, Deliveroo, and Just Eat.
Steiner said: “We’re delighted that Asda has chosen Ocado to support the next phase of their online growth. The UK remains one of the world’s most competitive and fast evolving online grocery markets, where technology, scale and continuous innovation are increasingly important for retailers looking to maintain leadership positions. “Through this partnership, Asda will be able to deploy a technology platform already processing more than 70 million orders annually worldwide, supporting market leading customer propositions across 11 countries. Asda will also benefit from Ocado’s significantly evolved platform, giving them the flexibility to adapt as the market continues to develop.”
Allan Leighton, Executive Chairman, Asda, said: “We are the cheapest full range supermarket, as consistently shown by independent price comparisons from Which? and The Grocer, and have a large, well established online offer. We know that continued success in this highly competitive market is dependent on providing a positive experience for customers every time they shop. Partnering with Ocado will strengthen our online offer and provide a consistent and high quality experience for millions of shoppers, from order through to delivery, while supporting our formula for growth.”
Asda will be hoping that the move helps it tackle recent sales weakness under its private equity owners, TDR Capital and Mohsin Issa, and fight back against its rivals, including a buoyant Lidl GB. Its UK grocery market share has dropped from 14.3% before their 2021 takeover to 11.5%, according to Kantar data, leaving it just above Aldi on 10.8%.
This and the aforementioned unnamed European deal are also much needed boosts for Ocado Group, which has been ending mutual exclusivity contracts in most of the markets where its automation grocery tech is live, including in the US with Kroger.
