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London-listed Ocado launches robotic warehouses in Australia

Ocado Australia
Image credit: Ocado

Online grocery retailer Ocado has opened two robotically operated customer fulfilment centres in Australia.

The centres, which have been developed with the Ocado Smart Platform using AI and automation, were opened in partnership with Australian supermarket chain Coles.

The Melbourne and Sydney robotic warehouses are part of a 2019 deal signed by the firms and have faced repeated delays due to construction issues.

“The start of operations in our two Australian CFCs is an exciting moment for teams at Ocado,” said Ocado CEO Tim Steiner.

“Australia is one of the fastest developing markets in the world for grocery ecommerce, and Coles is already a market leader in the online channel.

“As these CFCs ramp up, we are excited to help Coles bring a step-change in customer experience online to households across Sydney and Melbourne.”

Ocado said the centres will allow next-day delivery in Australia by the end of the year.

Ocado has been betting big on its automated warehouse technology, pouring millions into its software and hardware capabilities.

The London-listed group has signed similar deals with US retailer Kroger and Japan’s AEON.

In Ocado’s latest financial results, the company posted a loss of £153.9m, a reduction of 47%.

Ocado credited the slashed losses in part to a revenue surge across its various income streams. Its technology solutions arm saw the largest rise, reaching £241.4m.

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