Business
Statement regarding international partnership
Statement regarding international partnership.
About this update from Ocado Group Plc
[{"type":"text","content":"\n \nRNS Number : 4637C Ocado Group PLC 22 January 2018 \n\n22 January 2018\nOcado Group plc / Sobeys Inc.\nAnnouncement of international partnership between Ocado and Sobeys\nWe are pleased to announce the signing of an agreement between Ocado Group plc (\"Ocado\") and Sobeys Inc. (\"Sobeys\") to partner with Ocado Solutions to develop an online grocery business in Canada using the Ocado Smart Platform (\"OSP\").\nSobeys is Canada's second largest food retailer, operating more than 1,500 stores across the country, and generating sales of C$23.8bn in fiscal 2017.\nWith more than 15 years at the forefront of innovation and success in grocery ecommerce, Ocado will partner exclusively* in Canada with Sobeys to launch their end-to-end solution for online grocery services. This will include best-in-class front-end web site functionality, supported by Ocado's proprietary 'web shop' and mobile grocery ordering applications; construction of Ocado's latest generation, state-of-the-art automated warehouse designed specifically for grocery ecommerce (in which Ocado will invest to install its grid and robots); and last-mile routing management technology to optimize delivery truck efficiency, customer service excellence and punctuality.\nSobeys and Ocado will develop their first Customer Fulfilment Centre (\"CFC\") in the Greater Toronto Area. The build is expected to take approximately two years.\nIn addition to this initial CFC, Sobeys and Ocado will consider developing other CFCs in Canada's dense urban areas.\nOcado will provide a comprehensive and customized suite of support and engineering services to enable a smooth launch and sustainable ecommerce operations. Sobeys and Ocado will also partner to incorporate ongoing learning and innovation from Ocado's global experience into the Canadian business.\nIn consideration of the investments made by Ocado, including maintenance and access to technology, Sobeys will pay Ocado certain upfront fees upon signing and during the development phase, then ongoing fees linked to installed capacity within the CFC and service criteria.\nMichael Medline, President & CEO of Sobeys Inc., said:\n\"Sobeys intends to play to win in Canadian online grocery shopping. We are very excited to bring this best-in-the-world grocery ecommerce experience to Canadian customers. This unique and innovative Sobey...