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Ocado Group partners with Canada's second largest supermarket chain, Sobeys

Canada’s second grocery retailer, Sobeys has partnered with UK-based Ocado Group, with the aim of improving itse-commerce platform and home delivery ser...

Laura Mullan
|Jan 26|magazine6 min read

Canada’s second grocery retailer, Sobeys has partnered with UK-based Ocado Group, with the aim of improving its e-commerce platform and home delivery service. 

The partnership will be the British group’s second deal with an international supermarket chain within two months.

It comes after Ocado announced its first tie-up with the French company Groupe Casino in late November.

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“We are delighted to be working with one of the leaders in North American grocery retailing,” said Tim Steiner, CEO of Ocado Group.

“Sobeys is a highly successful and much admired Canadian business and we are proud that they have chosen Ocado Solutions to partner with to build their online grocery business.”

The deal with Sobey’s, which operates more than 1,500 stores across Canada, sent the online retailer’s shares up 28% 

The Canadian grocery chain will use Ocado’s Smart Platform to build its end-to-end online grocery, gaining access to the UK firm's logistics technology in doing so, including its routing management technology to optimise delivery efficiency.

“This unique and innovative Sobeys and Ocado experience will offer consumers the biggest selection, freshest products and most reliable delivery available anywhere on the planet,” said Michael Medline, President and CEO, Sobey’s.

“Our end-to-end e-commerce solution will allow Sobeys to build an online offer in a manner that is profitable and creates exceptional value for our customers, investors and supplier partners.”

In addition to this, the two firms will construct a state-of-the-art automated warehouse, designed specifically for grocery e-commerce, and develop a customer fulfilment centre (CFC) in the Greater Toronto Area.

The partnership marks a second international deal for the Ocado Group, with the firm looking to become a leader in the online grocery technology solutions market.