The online grocer’s customer fulfilment centres (CFCs), which became operational last month, were originally set to open at the end of 2023 but were hit by construction problems. They will serve Australia’s two largest cities, Sydney and Melbourne.
Ocado said it will help Coles enhance customer service across both areas, and by the end of December, it will transition next-day home delivery orders in and around the city centres from stores to the new Ocado-powered warehouses.
Chief executive Tim Steiner said: “The start of operations in our two Australian [fulfilment centres] is an exciting moment for teams at Ocado. 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.”
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The openings follow Ocado partner Sobeys, Canada’s second largest supermarket, pausing the launch of its new warehouse in Vancouver, which was originally planned for 2025, as the pair agreed to “end terms related to their mutual exclusivity”.
The pair have worked with each other since inking the deal in 2018, with Ocado contracted to build warehouses for the grocer.
Last month, Ocado almost halved its half-year losses to £153.9m in the 26 weeks to 2 June, compared to the £289.5m loss the year before.
Its retail business – a joint venture with M&S – is on track to meet its profit target this year as half-year sales surged 11% to £1.3bn driven by a 9% uptick in average orders per week.
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